"Well, maybe if they have The Mother Of All Hacker Battles online, and they manage to drop the internets like a bad habit, "
That won't happen. its one of the major flaws in this article that it pretends the cloud is more vulnerable to hacking, in fact its less although there are some new concerns that have to be dealt with.
"there'd be less web-based espionage, industrial, or otherwise. "
There is almost zero actual web-based espionange industrial or otherwise right now. Most of the hacks that make the news are nuisance attacks not anything like espionage. Things that take down a server for a while or corrupt some data or steal some data that wasn't classified as secret.
The military (unlike the every day perception) has been pretty smart about how they handle data, they have very rigorous policies and procedures that they follow for handling secret data and as long as those policies are followed its virtually impossible for anyone to get at such data via the Internet.
Read the Article at HuffingtonPost