Yay someone else who had actually used it. This is the same experience i had which is why I'm glad they removed it and promote that fact in other posts.
One thing I don't get in this whole ordeal though: Doesn't Skydrive store previous versions and deleted items like Dropbox (I've never used it)? From experiences with Dropbox it's still not what I'd call a backup (too much can go wrong when synching), but I at least expect it to preserve versions and deleted items, such that in normal operation one can undo everything. If MS has omitted that I really don't understand what they're thinking.