my email is iphonedot@gmail.com
1) All database/server/cloud credentials will be encrypted, although not a one-way hash. They will be decryptable using a key not stored in the database or on the database server.
2) The backup will reside in the user's S3 account, not ours.
I just got home and only have a little time yet tonight to hack on this, but I expect to have a very functional beta by tomorrow afternoon.
Maybe what you want exists as a service, I imagine you can find it if you google a bit more. However, what do you plan to do when a DB fails? Do you expect the recovery process to be automatic, or are you willing to restore manually?