WiFi router is an integrated communication device that works through the physical to the application layers. Whereas cloud technology (at least the part that we interact with) is the application layer.
Hence all the functions of the wifi router can't be replicated on the part of the cloud we interact with.
There needs to be a device that provides physical connectivity ,Mac networking,DHCP routing etc
Having said that you can certainly have cloud based control panels that can let you control one or all of your deployed wifi devices. That would work. As long as you have on field devices to work at lower layers of communication.
On a similar note all the higher application layer functions like captive portals can go through the cloud. In short, some functions can be deployed on the cloud. Some can't.
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