Earlier quoted context omitted.
Everything on your website that in any way addresses "Dropbox's security" should make absolutely clear the extent to which users can expect their data to be "secure". In Dropbox's case, users can expect the following: - Data is probably secure from sniffers That's it. It matters little whether "Drew has physical access to our storage servers anymore". Your code obviously has easy access to the keys used to encrypt an…
you're right in that all these things are theoretically possible in a system where the encryption key is not stored client-side. I don't know of many services that advertise every way in which their systems could be compromised. I think you'd be hard pressed to find a company doing this. in the case of google - is there a document explaining all the places your email could end up? we believe that what we advertise is…
On a related note, Dropbox is not the only company that advertises security even though what really is offered is kind-of-security. See Backblaze, for example — yes, the data is (supposedly) encrypted using my private key, which (supposedly) only stays on my machine, but I can't be sure because it isn't auditable, and to do a restore I have to supply my private key to the Backblaze website, instead of using a local decryption tool. Not good.