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It's pretty nice, and I was thinking to myself - hey cool, I could make an online backup of my code. Then it occured to me - who the hell is this guy, and why should I trust my code to be on his server!?

That's a huge issue you should consider. Why would people feel comfortable leaving their valuable stuff on "Drews" server?

data's stored on s3, and encrypted before storage -- there'll be another option to enter in an additional passphrase (or private key) when installing in order to encrypt your data before it leaves your computer (kind of like what mozy does.)

Maybe, but the encryption is entirely in the hands of the client application that dropbox provides (I suppose it is not open source), so it is still a matter of faith.

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