Well, this definitely cinches it. I had stuck with Dropbox thru the whole "your files aren't THAT encrypted" debacle because I have nothing worth hiding. But, this complete incompetence has convinced me that it isn't worth the risk!
I'm not as highly paid as the Dropbox guys are, I'm sure, but even I know to test authentication with automated tests. Oh, and not to let things that fail tests through to production!
What if I had archived my bank records there and someone go ahold of them? Thankfully I'm still just a little too paranoid for that.
I'm moving to Wuala or rsync.net; before I try the latter I want to test Wuala.