For no other reason than the fact that I can, I'm going to build this for you...today. I'll post the link when I'm done.
my email is iphonedot@gmail.com
1) All database/server/cloud credentials will be encrypted, although not a one-way hash. They will be decryptable using a key not stored in the database or on the database server.
2) The backup will reside in the user's S3 account, not ours.
I just got home and only have a little time yet tonight to hack on this, but I expect to have a very functional beta by tomorrow afternoon.