Given all the loss of customer funds, I don't blame people for getting antsy, especially when it comes to their money. For now, I'm just going to go with guilty until proven innocent, because a publicly verifiable blockchain should allow exchanges and wallet services to easily prove their solvency.
With all due respect, I think you and quite a few others have a misunderstanding how exactly the blockchain.info wallets work.
I keep most of my funds on paper wallets that were generated on a machine that has never been online. I keep a hot wallet on blockchain.info with a smaller amount of funds, about the same amount of cash that I am comfortable walking around in public with my physical wallet.
Blockchain.info keeps an encrypted copy of your wallet on their servers. They do not know your password. All operations on your wallet are done in your browser, not on their servers - your password is never sent to their server and is instead used on your own machine to decrypt your wallet data kept on their server. They provide a means to import your private keys from your wallet backup so that you have access to your funds. The procedure is outlined when you create your wallet. If you did not pay attention to this when you chose to put funds in your blockchain wallet, it's on you for causing yourself undue stress.
The reason I chose to use blockchain as my hot wallet is that the android app is very easy to use, sends backups to my email when the wallet changes, and there is a very clear procedure how to regain access to my funds using the backup when blockchain.info is offline, which means if blockchain.info disappears and never comes back, I still have my funds. I tested this procedure myself before putting in any serious amount of money in my blockchain wallet, and I am fully confident that blockchain has not stolen my funds and cannot steal my funds without expending significant resources to crack my password, which would cost more than what I keep in there.
While I am really annoyed with blockchain.info being down, Right now, I have live access to my hot wallet with MultiBit, have conducted two transactions since the outage, and at any moment, I could sweep the remaining funds to a paper wallet to an address with a private key that no person or online machine has ever seen besides myself.
I am not associated with blockchain.info, other than being an appreciative user of their website and wallet service.