I think the idea is to use paid online backup as another layer of safety. You still keep your data on your devices, but in case your entire house burns down, you have the online backup.

Online backups should be an absolute last resort in the case of something catastrophic like a house fire, not your only copy of important data. Losing them should just mean a little less redundancy in that regard.

You still can push your backups to another provider, it'll take a bit of time depending on this size but it's perfectly doable. It's not easy to have backups in separate locations otherwise.