Best comment I've seen on this: "encryption is the people's DRM." The case against MegaUpload has been such a colossal clusterfuck that I'm excited for the new service if only for the fact that it's basically a giant middle finger to the short-sighted entertainment companies and the government (ignoring, of course, all of the legitimate, useful reasons for using such a service).
Given the history of this company, I would absolutely not recommend putting anything in this system you wouldn't mind disappearing tomorrow.
I think you mean "the history of the US government and copyright industries". When even judges and other governments are like "wtf?" that kind of points to it not being completely MegaUpload/Dotcom's fault.
Oh, I know all about Dotcom and his history. He's a huge douchebag. I also know that this crusade against MegaUpload is little more than a farce, and it's silly to say "don't trust this company" when the DOJ can - and has - taken down other services, sites, and blogs, so Dotcom isn't really the issue.