There are some proposals for private files. However, I'm outside the AtProto world so not sure what exactly the suggested implementations are. I just hope they give enough control.
I think the technology could potentially be used for way more than microblogging. I would love to use webapps that store the data on my devices and share it with specific people. The data and access under my control.
He’s doing it to engage publicly with the community, since many of us also build on the protocol.
It looks like this basically just reinvents ActivityPub (local servers can pull or push to remote servers). So it defeats all of the "benefits" you get from Bluesky's firehose-based approach anyway, except for the fact that Bluesky assumes you're going to be using their AppView and they will always have access to your private data.