1. My apartment was Reddit HQ before we got bought. Where else would we have put the backups?
2. As best I can recall, the only thing on the web nodes was a source code checkout. I don't think that's particularly sensitive.
3. As ig1 notes, back then we had unencrypted passwords in the database and database copies on our machines, which were our personal laptops, so a spare drive in the apartment was the least of our problems.