I think this answer (which you used in few places here) does not address concerns people raised all over:
1) kite is useless (or at least substantially less useful) if you explicitly disable files/directories.
Example:
Customer says: This fridge I bought, poisons my good. Company: If you don't put your food into fridge its not poisoned.
Yeah, but it also not frozen afterwards, which was the reason for the fridge!
And no files/directories/lines/whatever policy does solve that problem. Partially because of 2)
2) Human errors will kill this. Just google for number of problems around security tokens, sshkeys and other thing commited to github by mistake.
The only solution is LOCAL index only.