3:30 meeting, drive home, maybe get some more hacking in. I need about 4 more hours and it'll be finished. OP's profile doesn't have a email or link so I hope he checks back tomorrow. :)
Definitely something to consider. It won't be right for everyone. Here's the assurances I can give:
1) All database/server/cloud credentials will be encrypted, although not a one-way hash. They will be decryptable using a key not stored in the database or on the database server.
2) The backup will reside in the user's S3 account, not ours.
I just got home and only have a little time yet tonight to hack on this, but I expect to have a very functional beta by tomorrow afternoon.
