The thing about Dropbox is that they were making the same claims (from the perspective of a non-technical person) that other you-manage-your-own-encryption-key

The thing about Dropbox is that they were making the same claims (from the perspective of a non-technical person) that other you-manage-your-own-encryption-key cloud storage sites were making. You put someone non-technical in-front of the marketing materials of say, Jungledisk, and Dropbox and people might even come away thinking that Dropbox must be even more secure since they're the market leader. And that's part of the problem in this case -- leadership implies trust. Dropbox used to have a FAQ somewhere that made of point of informing users that they cannot set their own encryption key (but Dropbox hoped to implement that functionality soon). Anyone with technical chops can read that and know that the encryption key(s) are centrally managed on the Dropbox internal network and anyone gaining access to that internal network can gain access to all of the documents. But your average non-techie accountant, CEO, or sale guy...?