"1.) Encryption keys" .. "would either be impossible or would be much more cumbersome for users without this capability."
Then make it optional and disable these services for people opt-in for managing their own private keys.
Then make it optional and disable these services for people opt-in for managing their own private keys.
I am not saying that you can't trust Dropbox. Quite on the contrary. But if you give your key to some unknown entity, you have to trust them. You can choose to trust their claims about what they do with it, but there is ultimately no guarantee.