[B1FF_PSUVM]

Also, will they ever encrypt files on the client side?

(Hey, it's been only nine or ten years evading that question ...)

[Sohcahtoa82]

For every user wanting client-side encryption so that Dropbox can't see the content of the files you're storing, there's another user wanting server-side text searching, which isn't possible with client-side encryption.

The answer, of course, is to make client-side encryption an option.