I would argue that usability is in the eye of the user. I don't care if most users don't understand what removable storage is and won't notice or care about this change. I know what it is and how to use it, so making it effectively useless impairs my usability.

The fact is cloud storage is getting more and more practical (assuming carriers don't ruin it)

Big assumption. Also not the only one: you're assuming cloud providers can keep your data private.