How big is the hard drive in there? Judging from the price, the disk inside can't be much bigger than 2TB. That means if I have 1 TB of data and all the other have 1TB of their own data, it can only "replicated" exactly once (unless there are dedicated "cloud" servers involved), Which means, if my device breaks all devices which received a portion of my data need to be online for me to restore the content.
How does the encryption work? Surely the AES key can't be stored on the device - if it breaks your data is lost. If it's stored in the cloud it's not any safer than cloud storage.