We encrypt data in motion, but not at rest (yet). Since this is a beta product we wanted to get it out there first with a free version that would bring the barrier down and allow us to learn as much from users as possible.
So I read it as meaning that data is not encrypted at all on disk (i.e. no privacy). This does render the service useless for, not all, but many use-cases.
> No word on how to restore or access backups when the backed up host has failed. That's also included in here[0] - that feature is still in testing and hasn't been released yet.
I hope you're kidding :-)