They are, and most time this allows them to abuse you. But what do you think happens once you that gateway is blown open, isn't your front door next?
> There are multitudes of online storage providers outside of the UK's reach and jurisdiction
What I said above means that once you normalize the situation that providers have to open the gate to your yard whenever the state comes knocking, the state will just come knocking directly at your door. In other words I'm not sure the state will stop in its pursuit of access to your data when it can just incriminate trying to evade the law by storing it out of reach.