Is Amazon's Cloud Music Play Too Little, Too Late? What will Apple do?

Amazon's announcement of it's Cloud Drive and Player makes it first out of the gate of several "cloud locker" music services from some major players.  Goole and Apple are expected to bring out their own versions soon.  These services allow you to stream music that you already own from the Internet to an array of devices - computers, iPods and portable devices, phones, and other Internet-connected devices.  As pointed out on the highly recommended blog, BootsyBangingThrees.com, applications like Subsonic have allowed you to stream your music over the Internet for years, with a much higher degree of customization and privacy.  The question is - does the average user even want to do this?