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If this get popular and the people behind it can be trusted, this could replace sms and e-mail. The iOS, Android and CLI clients are open source, but I they need to open source the backend too. I also like the idea of giving the noun "telegram" a new meaning.

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Replacing SMS I can see, since whatsApp/GroupMe/iMessages/whatsoever is already doing so, but replacing e-mail? Why would it replace e-mail in your opinion? I think IM/chats have a completely different purpose compared to e-mail, which unfortunately is often times used wrongly imho.

What is the point for server side open source? You can never trust that this code is launched on the instance which answers to your client' requests.

If you don't trust the backend in some particular way, nothing can help you to trust cloud storage. You should better take a look at end-to-end encrypted chats [1]. In theory they don't allow server to get access to any user data, except the fact of sending messages.

[1] http://core.telegram.org/api/end-to-end

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