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To Anyone Downvoting This: Let me ask you one question. If someone without a seatbelt gets hit by a drunk driver does the fact that the accident's the drunk driver's fault mean it was ok for them not to wear a seatbelt?Is a lack of a seatbelt the cause of the accident? Would having a seatbelt on prevent the accident? Is the drunk driver not the 'most guilty' party here?
No offense, but this is the type of situation where the company (Microsoft/Danger) needs to really get smacked back into the Stone Age. It's a case of huge neglect if they just lost all of their customers' data. I mean what will probably happen is just an apology with a, 'sorry this won't happen again folks' is wholly inadequate for what they caused.
Reaching into your other comment, while the bus driver and doctor have laws stating that they have legal responsibilities, there seriously needs to be one here. Regardless of consumers' ability to backup their own data, this sort of incompetence is unacceptable from any company operating on this sort of scale.
It really enrages me that the likely outcome of this whole thing will probably be less than a slap on the wrist, if that. While I'm not really a proponent of 'cloud services,' the fact that companies feel that they can offer these services and try to weasel out of any sort of damages they might cause through their incompetence by trying to add things like, "we are no liable for any damages" in some contract pisses me off. This is the same sort of legal nonsense as the 'arbitration' clauses in EULAs where the company is the one that gets to choose the person that will decide who is right and wrong in disputes... and someone somewhere in the company actually believes that this is fair.