I think you have a wrong view on what cloud based software really is. Or can be. It's not that you have to run the software from the cloud! And it's not that everything is always saved in the cloud! I am a graphic designer and the BIGGEST player in the market, Adobe, (which is some ten thousand times bigger then Cakewalk) has switched to cloud based software ONLY. No more boxes. None at all. Everything from the cloud. And what does this mean?
1. You only need internet to download and install the software and to register it.
2. In the case of Adobe the software will try to validate online once a month. If you have a year subscription that would be once every three months.
3. Your software will always be up to date, the newest version, the newest features, so no more need to wait for the next version that will be released in a year or two... hopefully. When there is something new, you get it!
The only drawback of course is that in the case of Adobe you have to get a subscription, so you will be paying for the software every month... every year... every decade. You CAN of course stop paying, but then you also have to stop using the software. Now if you were used to getting the latest version everytime anyway, this won't be a very big deal. But if you are used to only buying one version every two or three version, the cloud based solution will cost you a lot more money.
Anyway, you COULD say that CW is already using the cloud: if I want to buy X2 (which I don't own yet) I can get it from their site and I am done. The only difference is that since there is no subscription, the software doesn't need to be validated every month or so. But other then that their isn't a huge difference. With cloud based software you will still be able to use the software offline, save everything on your own desktop, etc. You won't be needing to stream audio over the internet or anything.
P.S. Steam is a site and a program that lets you buy mainly games online, download them and install them locally on your computer. With a login to Steam you can access everything you buy on any computer. Everything is installed locally but with Steam you DO need an internet connection all the time because you have to login to Steam before you can use the programs you have installed. It's another kind of cloud thing, you could say. This system is NOT what you would want for things like Sonar or Adobe software or anything else that can have a deadline. Games don't have a deadline...