Simply put, I am not aware of any heavily publicised security breaches with Live Mesh like there have been Dropbox.

The impression I've had in recent times (something presumably shared by the article's author) is that security is something that Microsoft takes very seriously these days. That has happened out of necessity, originally precipitated by security flaws in the Windows line of OS. But at least they've already learnt that security is a serious issue and tightened things up - something dropbox (and other players from recent hacking scandals) are only just learning.

That's not true. He mentioned that for sensitive documents you can use Windows Live Mesh without Skydrive and have the equivalent of Dropbox's LAN sync without having your sensitive documents in the cloud.

Is it just me, or is this a killer feature? I had no idea this was baked into Live Mesh. I use rsync for this today but I am definitely going to check out Live Mesh.