Re HFS, interesting. That isn't available for me on a Mac at present though it looks good for W and L users.
Re paranoia, I am perhaps overly paranoid. I said, or meant, they *could* do it, not necessarily that they *do*. I too can't imagine them turning users over to the law unless there were some huge amount of traffic in such material under that user's account. I haven't heard of any specific instances of that happening to regular users, or even to huge-traffic users.
Here is one of the references at wikepedia:
http://en.wikipedia.org/wiki/Dropbox_(service)
"Copyright issues
Dropbox has agreed to abide by the DMCA copyright guidelines and therefore it has dissuaded its users from uploading copyrighted content to Dropbox's servers. Dropbox has reserved the right to delete or remove any file from users' accounts if it violates the DMCA.[32]"
Yes, I know the term "dissuaded its users" is vague.
Another from same article:
"Dropbox has been criticized for not supporting the ability for users to use their own AES-256 keys…."
Someone like me who is new to using such services needs to determine what kind of files to store there. Of course, it's wise to hold back any confidential/financial/security files. At this point I've pretty much decided not to use these services at all except for one "working" directory where I keep work in progress that I might need to refer to or sync to/from on one of my other devices.