2. I am not a lawyer, but part of this post is to focus on the viability of the model. What I hope to come out of this is discussion on ways to reduce the legal exposure a company has in this privacy-centric model.
3. That is true but that isn't how copyright lawsuits generally work. For example, if you own a CD and they get you downloading something from bittorrent you'd have to argue that point in court. Even if you did nothing wrong that is more exposure than "client side encryption" would lead most people to believe.
I agree it is strong, though I wouldn't call it an attack piece. I will gladly update this as more information surfaces but I believe my assumptions are plainly explained and are likely to be true. The reason for my focus on them is they did many things exactly how I would have wanted them to, but it is dangerous to advertise a certain level of encryption that is generally understood and then provide something that has a variety of subtle flaws. I'll add an update to clarify #1 as that is important.
Edit: Convergent encryption link is fixed in the post (thanks for the tip)