jA -El, I think the key aspect you are missing is the "Any USB device" part. E.g if Aunt Jemima comes over your house with brand Bortz-T-Genero-Stick 4GB USB drive, full of her vacation photos from the People's Republic of Pancakes; she can plug it into the CloudFTP box. Boom, you can look at them directly on your iWhatever. In theory of course.
Otherwise, you have to play the file shuffle. Pop Bortz-T-Genero-Stick 4GB USB drive into your Dell.icious PC box of Magic Partz and drop the images on the desktop, or some "My Pictures" folder. Then connect your iThingy into your Dell.icious PC box of Magic Partz. Next, open iTunes, pull the images onto the iPad sync, and sync. Wait. Disconnect. Yay!
Option one is faster and does not require a PC or Mac. Option two, tried and true, but more of a buzzkill when you are amped to see mountains of waffles and butter loom tall over plains of pancakes smothered in MAple Syrup and Butta'. That being said, bummer it is ecpected to work over the cloud and not WiFi directly with the iThingy...
D>M>