Fail on 2 counts
1) Unfortunately, monopolies of any type are Bad Things - Adobe (regardless of their incompetence) got away with it simply because in the media industries they are almost impossible to replace. Hobbyists can use cheaper or free alternatives, but pros are stuck.
2) I have always thought that "Cloud" was a stupid person's idea of an intelligent thing to do (The term cloud should be only loosely associated with the Adobe offering, as all the processing takes place on the user's PC, and only the licensing method relies on the cloud). Instead of wasting time attacking millions of low-value targets one at a time, hackers just have to go for the one single honey-pot. And they do. And Adobe will not be the last big name to wake up with a gigantic omelette on its corporate face.