Nice read. We talked about something similar somewhere around here. "Data Trustee" will be challenged in the courts so stay tuned. While I realize my thinking is not the normal user/company, I believe local encryption followed by then handing off to the "data trustee" is a better model. You would have all the benefits of the data trustee storing info out of usa jurisdiction. Then ultimately WHEN that trustee lets you down, the local encryption would still be an extreme obstacle for the adversary. At this point there is still no law requiring backdoor access to encryption so M$ could do this if it wanted to. Just basic brainstorming.
