Cloud Computing, for those of you who don't know, is using an external data storage for all your files and media, that can be accessed remotely, either by your computer, possibly your games console, your phone or any other media device. The advantage is that, provided you have the money, you have virtually unlimited space, as server farms would be constructed to house this data, and constantly expanded. Using advanced Wi-Fi or other wireless connections, you simply turn on your device, link into your set of data, and away you go, no need for bulky hard disks. Furthermore the same data can be accessed by different devices, so no need to copy a song from PC to Ipod, it'll just access your data.
 
For gaming, this basically means that if you want a game, you don't go to a store and buy a disk, then install it, you buy from the internet and it'll appear in your data. Quite possibly it'll only save your particular information to the data, so you literally just buy the game and your good to go, no need to install whatsoever. 
 
My problem with Cloud Computing is that your data is not physically kept by you. While data farms would be protected by huge amounts of both electronic and physical security, the fact remains your documents, movies etc, are not physically held by you. This leads to all kinds of privacy, copyright and ownership issues. Also is the question of who would have access to this material? Would the Government? The CIA? The companies that run the server farms themselves? God forbid, Corporations? The advantage of current hard drives is that while the data contained is in virtual form, it is also physically owned by you, and assuming it's not connected to the internet, you control who has access to it.
 
While Cloud Computing is still only in the realm of prototypes and theory, we still don't have fast enough or well covered Wi-Fi, these questions are still valid, as many technologies being developed today are designed with Cloud Computing in mind.