Yes, it was suddenly changed after the uproar when people first noticed that clause. They backpedalled pretty quickly.
However, I will no longer trust Adobe, since they pulled this stunt. They're also, I believe, doing the same with Adobe Acrobat, with regard to online content. Not sure if that's been backpedalled yet either. They are no longer the only game in town, which was what led them to take advantage in the first place.
The other problem with the cloud version is simply that they may pull verification in the middle of a project, so I would never risk not having my programs and files on my own computer.