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Why I can't use this:

"This app will have access to your entire Dropbox."

Which still happens with pretty much every Dropbox app, despite fine-grained permissions many months ago. Dropbox, love the app, but the company needs a strong developer relations programme to get messages like this out.

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Is there any other way to get an arbitrary file from your dropbox into a text editor?

https://www.dropbox.com/developers/announcements/11

"We've introduced App folders: app-specific folders that Dropbox will automatically create and keep track of, even when users move or rename them."

I assume that means a fine-grained folder instead of the scary "entire Dropbox" situation. It was introduced on 8 months ago, but there's little detail on it.

but this would mean you wouldn't be able to share work from say an iPad app to this one, which to me is kind of a hassle if I couldn't

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