HT4847 Don't understand the purpose of icloud storage

Hello,
Maybe I'm alone on this one, but even after reading Apple's articles on iCloud and iCloud storage, I don't understand the purpose of it.  I am only using 23.5 of a 25 Go storage (all of it is backup of all my apps and files (not sure the movies and music is covered even though the iPad general setting info implies this since I'm in Europe) and yet, if I delete the app files from the iPad, I also delete them from the cloud.  So for instance, I want to update to the latest iOS and it says I'm short 312 Mo and need to delete stuff from the iPad. 
If I understand correctly, the only way to do this safely is to make sure a duplicate is on my PC via iTunes. So then what do I need the iCloud extra storage for (for which I am paying)?  Is this like a SkyDrive or Dropbox or not???
Please someone clear this up in simple, step-by-step type language.  I feel like I'm getting a round around when I read or take to Apple folks via email.  Thanks in advance!

Movies, music and apps are not part of your back ups, they are all available already on Apples servers as part of the iTunes Store. Backups consist of settings, photos and other data which cannot be obtained from elsewhere.
iCloud is not general online storage like Dropbox, in addition to back ups it keeps all your app data from apps such as contacts, calendars etc so it can be accessed by all your devices and keep them in sync. But in keeping with the mobile system structure the data is accessed through the app rather than a folder structure.

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