* In online Internet applications, it can only be delivered safely on pages for which every resource is delivered over HTTPS. Most developers aren't going to see the point of using both HTTPS and JSCrypto. The ones who choose simply to use JSCrypto have totally insecure applications.
* For the task of creating applications with Tarsnap-like insulation between the server and customer data (ie, a backup system where the server can't read your data), this library won't work; any application that delivers this library can in a myriad of subtle and undetectable ways sabotage its security.