When you sign up for Space Monkey, you get a physical networked hard disk with 1TB of storage free for you to use. It's actually a 2TB drive; the rest gets used by other people on the system.
So 1TB is filled with other people's data? What about security? Dropbox had a simple security issue that potentially leaked all users' data. But now, the data is on your drive. You could mirror the drive ('dd') and try to break into other user's information without anyone suspecting anything.
Or what happens if someone stores child pr0n on SpaceMonkey, and it gets mirrored to your drive? Legally, are you now on the hook for possessing the information since it's on your device?