> There is a difference between the client (which is proprietary)

Talking about Ubuntu One, I think you're wrong.
The client is released under the GPLv3;
the server software is proprietary which is bad for canonical, not for us.

I don't see any problem using ubuntu one with complete data encryption beside of the fact that it might not work very well. I heard many bad things about ubuntu one's sync behaviour which seems to be buggy.
Server storage gets deleted instead of new folder on the pc gets synced etc.

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