#1 is not true. SpiderOak and Wuala both have products in the marketplace today that demonstrate the effective use of encryption in a backup and sync app. SpiderOak has no ability to examine or to give the plaintext of a user's data to a government or anyone else - not filenames, folder names, etc. On the servers, we just see sequentially numbered encrypted containers. We are incapable of betraying our customers in this way.