until the servers go down on the other side, temporarily due to breakdowns, overload etc or permanently for business reasons.
think in the long term before making such rushed judgements
Eventually the servers will be shut down, yes. It's simply inevitable. However, it's not very likely to happen anytime soon (maybe in like 30 years?).
One of the big benefits to using the cloud to host things is that you pay for only the resources that you need. You also have 0 maintenance costs, as MS takes care of all of that for you. So if you look at how publishers shut down servers (EA, Acti, Sony, MS, etc), that's not likely to happen next-gen. Each of those publishers own their own servers. They need engineers on call all of the time to make sure the machines are running well, take them down to perform security updates, do backups, troubleshoot hardware, etc. That is why they eventually get shut down. The cost of keeping those servers you own up starts to outweigh any benefits. Plus, they only shutdown the servers when there's a tiny population of people playing, and they can get that data so they know when a good time is (if there's 5 people playing your game online, it's not worth it if it costs you let's say $600 a month to keep the servers up). Plus, the publishers want to shut those down so they can reuse the hardware for new games, which means that new game has less up-front costs since they can reuse servers (and some servers cost around $20k each for big database / stat servers).
When you move to the cloud, you already have 0 maintenance cost. MS takes care of all of that for you since it's their platform. They do the security updates, hardware troubleshooting, backups, etc, and you are never even aware of it as a developer, which is great because it's one less thing for you to manage and to pay someone to do each month.
You also pay for only the resources you use. So if you have 5 people playing your game, maybe they only need a single small server which costs peanuts to rent each month. If more players start to play your game (maybe someone is doing a Let's Play nostalgia series or whatever), then it automatically adds more servers, and when it dies down, it takes away the extra servers, so you are only paying for exactly how many resources you have. This should allow developers to just not even worry about taking their servers down. The cloud will automatically take care of the scaling down, and will charge the publisher accordingly.
should he not be working on answering more important questions?
If only he could multi-task.

The answers will come, just give it time. There's always going to be more questions that people will want answered.