To everyone asking about the encryption, it isn't really about protecting your data its about protecting themselves. They have created a service that is billed as a drop box competitor but it's not. This is megaupload2, they just need it to not look like they are marketing it as that.
They needed a way to deny any knolage of file sharing and have found a two pronged attack. The encryption means they can deny any knowledge of what they are serving, and marketing it as a drop box type tool means that they aren't marketing it as a blatant tool for illegal file sharing.
Yes, megavideo was a large part of their platform. I think it is only a matter of time before we see them build a video player on top of mega. I suspect there are technical hurdles to over come with decrypting and then playing the video using javascript though.
That doesn't mean you can't use it like a Dropbox service with more free space, surely? Dropbox also doesn't encrypt your data to any meaningful degree AFAIK.
They needed a way to deny any knolage of file sharing and have found a two pronged attack. The encryption means they can deny any knowledge of what they are serving, and marketing it as a drop box type tool means that they aren't marketing it as a blatant tool for illegal file sharing.