> And sending data across the wire in the clear and encrypting later
As I understand it, the app uses SSL, so data is always sent over a (presumed) safe transport. I do agree that in order to meaningfully differentiate from the Google/Microsoft/Dropbox/OtherCloudFirm CanHasAllYourDataPlease-model encryption needs to happen 1) on the client 2) by default 3) For everything (including meta-data like filenames 4) should probably not be possible to turn off
Either way, I find it interesting that someone is trying to do at least some things right. It'll never be secure as a hosted solution (presumably they can (be ordered to)) backdoor the client at any time - see Lavabit) -- so I'm not sure I see the point (secure, but not actually secure?). Maybe release it under AGPL and offer a hosted version in order to a) have the client(s) be open and b) offer a solution to those that want to make the trade-off?
It would still be miles better than storing data with a provider that openly says they datamine everything.