Although I don't use iTunes much, it allowed me to copy my CDs onto my computer years ago. It then allowed me to make additional CDs for my vehicles which was useful at the time and still is for our 2005 vehicle. For our newer vehicle (2014) I copied my music to an SD card which I inserted into the entertainment system of that vehicle. I also copied my music to a "thumb drive" that is plugged into my BD player.
Windows Media player also had the ability to rip Audio CD's into MP3 files fro a while now, and create additional CDs from those MP3 files or store them onto thumb drives or usb sticks too or copy them to your google play music library onto the cloud.
Some people have their music (from CDs or other hard copy or download) on their iPods, iPhones, etc and don't stream.
Not everyone streams. I don't use "the cloud".
This I 100% agree with you on. There seems to be the older generation who actually bought music and has music on many different media formats, while there also seems to be a trend with the newer younger generation aka millennials who, have never purchased music, they do not want to purchase nor do they want to play it offline the simply want to subscribe to a streaming service like apple music or spotify or google play music and stream their songs when ever they want, even when they cross the border into the usa when they are now roaming on a us network they still prefer to stream music from their phone onto their car radio even if it costs them more money on data and roaming fees in the long run.
I also back up my iPhone and iPad to my Computer using iTunes. The Mac Mini computer is backed up using Time Machine to an eHDD that is stored in another part of my home, along with occasional backups to a thumb drive kept off site in case of a home catastrophe. The Mac Mini files are also backed up to a MacBook Pro on occasion that I use when travelling.
I guess ive never had the need for a "program" to backup my stuff but I do see the point of having it used for that, I guess I am so used to backing up stuff to the cloud via mobile, Heck, I do not even own a working computer at this time so the cloud is very convenient for me.
Good points none the less. But yes more and more people are becoming computer-less so yes I do see apples vision of scrapping it all together, what are you going to do for your 3 points when itunes is gone?