Right, i don't rely much on the cloud. I do backup a few things on it, but it still doesn't replace the sd card. Being cheap and exciting the micro sd will only hurt sales. Companies can make big money with the sd card, look at the sgs3.
If a company is going to create a top tier device, they need more than a powerful soc. They need features to bring in the true geeks. And those geeks look at things like batteries and sd cards. As for thickness, look at the sgs3. Removable battery, yet is almost as thin as any other device.
Lg wants a top tier phone but they ignore the die hard tech geeks, and those are the people you need to speak to when aiming that high in the market