Until they implement client side encryption I cannot use this service. Forget about NSA, what about rogue admins, or just plain bugs.
Dropbox = Your-Unencrypted-Files-Here.com
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Client side encryption defeats the purpose of most of the value-add features of Dropbox.
I'd actually argue that it would make the service more dangerous, as once you decrypt a file outside of the context of your desktop, the Dropbox service has the key. How do you share a file on the web or via mobile client with low friction without rendering that client-side encryption useless? (A: You don't.)
IMO, if you have data security needs that necessitate client-side encryption, and you use a public service to store that information, you need to give up whiz-bang features or reduce your security requirement.
> How do you share a file on the web or via mobile client with low friction without rendering that client-side encryption useless? (A: You don't.)
Exactly. Not all of us _need_ to share files, I just need a secure backup. And it is technically possible to access files on various clients using only client-side encryption and separate encrypted files from plain-text should you need to.