You got that so close, but wrong. Cloud services are inherently insecure because you don't have physical control over the devices containing your data. You have to trust that the remote end is secure, and exploiting trust is what intelligence agencies do best.
Here is the Ruckus Society's manual on "security culture" which has some brief info on why you need physical control over your data storage devices. Includes also some pointers on how to establish strong(er) physical security for your data. http://ruckus.org/article.php?id=789
For an encrypted router, here is my script for making a RaspberryPi into a PORTAL: https://github.com/grugq/PORTALofPi
And an older blog post on why encryption and tradecraft only get you so far: http://grugq.github.io/blog/2013/03/12/anonymity-is-hard/
Here is the Ruckus Society's manual on "security culture" which has some brief info on why you need physical control over your data storage devices. Includes also some pointers on how to establish strong(er) physical security for your data. http://ruckus.org/article.php?id=789