ps. I have repeatedly encountered people who falsely assume that Truecrypt does not allow incremental backups with Dropbox. The thinking behind this seems to be assumption cipher-block chaining (CBC) is used. Truecrypt uses XTS mode.
Needless to say, with encfs on Dropbox, files are synced as soon as they are changed.
Sure the unencrypted copy would be exposed, but not to any process that couldn't already access the mounted directory, as far as I can see.
1. Keep TC container in a non-shared location on local disk
2. Mount it, keep it mounted
3. Periodically backup this location to your Dropbox folder
Now, the trick is to use backup software that is capable of
(a) shadow copying
(b) incremental file updates
Shadow copying works around .tc file being locked.
Incremental updating keeps things quick.
The only Windows software I know that is capable of this is Bvckup 2 - http://bvckup2.com(I posted this earlier, but then deleted the post as it read kind of spammy. But this is the way to handle TC container backup, so here it is again. And that's one gem of a backup program too, totally worth a plug).
https://wiki.archlinux.org/index.php/Disk_Encryption#Compari...
It would be one thing if all these systems used roughly the same XTS construction, like modern full disk encryption systems. But they don't; they use '90s constructions like block-addressed CBC.
If TC + Dropbox is not an option, maybe owncloud + private hosting +SSL certs should be used instead... OR SSHFS with private keys.
I know they could potentially do cute de-duping tricks on their end, similar to tarsnap, but even if they passed those space savings on to me I'd still lose the file-level features.
That's why I chose EncFS to begin with, and asked for potential other file-level tools to replace it. Realistically, I'd prefer if this expedited EncFS 2.0 and 2.0 fixed the noted issues.