Syncing:  iCloud vs USB dumbed down

Can someone explain to me, and please dumb it down, iCloud vs USB syncing.  My needs are pretty simple iPhone 4-wise and computer-wise.
I have a Macbook with Leopard.  I am not wifi.  I just want to make sure that if my phone crashes I have my information and if my computer crashes I can get my information if I need to.  Until yesterday I didn't even know I could  sync using iCloud. 
I don't want duplicate information if I can help it.    I also don't have a MobileMe account but I think I need it to sync using iCloud?
Can I get some clarification?  
thanks

Thank you so much for the clarification.  I may get wifi but doubt I'll upgrade to Lion.  So if my phone and computer crash at the same time I'm SOL for the most part right?
Can I ask then, how did my contacts get to my gmail account?  That happened and I have no idea what I did to get that to happen. 

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