I have absolutely no intention to spread FUD about client-side encryption, and in fact I don't think Dropbox's speed advantage has anything to do with (lack of) encryption. Encryption shouldn't have any noticeable impact on sync speed, since modern CPUs can encrypt a file a hundred times over in the time it takes to upload/download it. I agree with you and suspect that it has more to do with crappy architecture.
Anecdote: SpiderOak takes 5 minutes synchronizing metadata with the server if I start it on a laptop that I only use occasionally. That's how long it takes for the client to find out what files I changed in my other machines in the meantime, including all the files that have nothing to do with this particular machine. Nothing gets synched during this time, and the client sometimes consumes a whole CPU core for extended periods. It's very annoying when I just want to see a few files that I know I changed in another machine. I understand that the protocol needs to be different if all the encryption is done by the client, but this is just ridiculous. Wuala is no better in my experience, although YMMV depending on your use case and filesystem structure. (I have over 50GB of data in my SpiderOak account, made up of a quarter million files. At one point I had over 100GB stored in there, and it was a PITA to sync any files at all.)
As an interesting comparison, Microsoft SkyDrive performs just as terribly as SpiderOak does when you give it a few hundred folders with ~100K files to sync, despite the fact that it does no client-side encryption. It just sits idle for half an hour or more, scarcely utilizing any network resources. I have no idea what it's doing. Maybe it does sleep(random()); between each upload. In any case, encryption isn't making it slow. It's just bad app design, bad protocol design, and perhaps overloaded servers.
Dropbox, on the other hand, immediately begins to upload/download my files, and once it's done scanning any large folders, its speed is only limited by the bandwidth of my Internet connection. When I need to do a presentation, I can just work on the .pptx file in my Dropbox on my desktop PC, take my laptop to the conference room, and expect the .pptx to be there as soon as I wake my laptop. That's the meaning of convenience. By the same metric, none of Dropbox's commercial competitors (perhaps with the exception of Google Drive, which I don't use) are even close to convenient.