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Powder keg or not, a Privacy concern would certainly influence my decision of whether or not to use their APIs in my software, especially on behalf of consumers. They've been trying to attract developers to their API, and they just lost my interest.

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I don't see the privacy concern. Is the fear that Condi is going to persuade Dropbox leadership to open the doors to govt. snooping?

I don't fear that, so much as that she would facilitate it or fail to act to prevent it. I don't care about most of the content of the OP's page, but I'm not really willing to give her the benefit of the doubt when it comes to making sure I'm the only one with access to my data.

As MichaelGG points out, maybe I was wrong to assume that my data was safe in the first place. In either case, yes, Dropbox and its APIs are no longer on my radar.

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