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Myself and some friends worked on something similar to this just over a year ago for a group project at University.

I think collaborative code editing (or in the case of our project, more aimed at code review) is one of those ideas that lots of developers have had and thought "that sounds cool". But, when it actually comes right down to it I think most people want to write code in their own time in their own editor, without a sense of someone looking over their shoulder.

That being said it looks polished and you have some cool features. Kudos for building something.

Screenhero[0] solves the same problem a little better in my opinion. Very cool though!

[0]: http://screenhero.com/

See also https://madeye.io/pages/docs

Though it's pretty smooth when testing with a little 100-file project, the obvious concern I'd have is that you are hosting your code and the data is running through their server... nothing prevents them from simply slurping down people's repositories...

MadEye creator here. That's definitely a valid concern. I can tell you that we're not slurping up your repository (we aren't), but you have no reason to believe me. We offer an enterprise version that can be hosted entirely behind your firewall if this is a real concern.
My first thought "why would i wan't to stream my code through their server"
I assume its main purpose is for open source projects only.
You don't trust your code to anyone else's servers?

Do you not use GitHub? You host everything in house because you don't trust any provider to not slurp down your repository, clone your business, build it up, compete with you, and overtake you?

In the movie The First $20 Million is Always the Hardest (http://en.wikipedia.org/wiki/The_First_$20_Million_Is_Always...) there's a massive conspiracy to steal source code from developers using...webcams.

I can only presume that having a plot revolving around a distributed version control system with a nefarious controller would go over the heads of the audience. It is a much more sinister plan, though.

Yes.

Hosting your own code is hardly difficult.

It's also not just the provider you have to worry about, but the entire internet that has access to that provider.

We've just started using Floobits, which works via editor plugins, and overall enjoy it. Currently supports vim, emacs, Sublime Text, and IntelliJ.

Still a little rough around the edges, but it's real nice having everyone using the editor of their choice.