I agree, but also, doesn't every cloud provider do this?
What if a law changes that requires them to update their ToS and would make it illegal to provide service to foreign nationals without including it? I guess they should provide a data exit path at least.
Yes, they're obviously free to do business (or not) with whomever they want for any reason, but there should be a way to end the relationship without the unilateral threat of confiscating your property. This is going to become a bigger problem as data becomes more and more important.