> how do you convince them to pay extra for privacy?

We are hopeful that we will be able to reduce the pricing as we scale up and hit a critical mass.

> who's going to tell them to do that?

We plan to implement a referral program, similar to what Dropbox did, to incentivize existing customers to spread the word.

That said, you do bring up interesting points. To repeat, we aren't averse to the idea of maintaining a self-hosted variant. Just that due to our limited bandwidth we had to choose one direction over another. Having advocates is important and I suppose with time we will have clarity on how to best do this without stretching ourselves too thin.