yes. you can encrypt data locally and then upload it to any service. what mega is doing is adding another level of encryption. i am not a technical expert when it comes to encryption so i am not sure how sharing works when you encrypt files with a private key on your computer.
well they are at least creating a new standard for cloud storage services. something that few services already use. google, microsoft and dropbox i believe do not use encryption client side. they have access to the raw files uploaded by their users. microsoft of course is known to suspend accounts based on files stored on skydrive. maybe this would push these popular services to start offering client side encryption as well by default.
Agree . Having it default in one way make it a new norm for all cloud/online storage. How it will go with movie / govt is yet to be seen .. I mean currently there is NOT a mass encrytpion of data and as you said many service have direct raw access , which is good for govts , but with default encryption , i dont know how govts will react.
from what i understand, encryption is not illegal in india and in most countries. governments tried to make it illegal. you can read about the developer of pgp who was targeted for creating an encryption solution that could have been used by anyone. windows 8 offers bitlocker encryption. android also has encryption available as an option. of course, no one can tell if there are backdoors in these commercial applications. but there are enough open source technologies that are safe to use like truecrypt. governments might not like it. but at least right now, services and technologies like VPN, PGP are perfectly legal for use here in india.--also. the problem with -- link removed -- and other services was that they allowed anyone to share and download copyrighted material. with encryption, i am guessing that is not going to happen. if the decryption key is publicly available, what is the point of encrypting the data in the first place. using mega on the other hand would be very much like sharing files privately between friends. so it should not cause much concern for the authorities.