That requires physical access, which is arguably more secure than internet access should your credentials be compromised. This is a major step in the right dire

That requires physical access, which is arguably more secure than internet access should your credentials be compromised. This is a major step in the right direction for Dropbox. I don't think it's Dropbox's job to encrypt and secure my local files. This would break many use cases, and there are other purpose-built solutions for this. Dropbox made their business on an extreme convenience (your files everywhere through a dead-simple, familiar interface). Inconveniently, convenience is often the enemy of security. It's a "good thing" that Dropbox is now offering some granularity over the convenience/security spectrum.