I think that if a bunch of smart people went into a room, they could come out with a set of core principles that are in the best interests of users of cloud IT systems, but not necessarily in the interest of the service providers.

Example: Phone number portability. Before 1997, your phone number was immutably associated with your telephone company. That meant that you were stuck with cellular provider X unless you changed your number -- which is a big deal for many people. FCC regulations forced the carriers to allow portability... an act that cost them alot of money, but benefited the public good. So while government regulation can lead to extreme scenarios like a Maoist-style police state similar to what is described in the comic that you linked to, that isn't a likely scenario.

Government regulation applies to the government too. The absence of principles enshrined in law and regulation regarding police access to your data has resulted in police and prosecutors obtaining broad powers to access or mine your data through the judiciary.