Whether DHH is "right" in some philosophical sense, this is a small company with a lot of technical experience in a variety of technologies and with presumably a lot of technical chops, so generalizing their experience to "cloud is good" or "cloud is bad" isn't really possible.
I mean, I work for a cloud hosting vendor. I'm not saying one side or the other is right, only that people who are dunking on 37signals for this are telling on themselves.