For me the problem with this approach is trusting that encryption will keep your data safe indefinitely. I worry that current encryption algorithms will become crackable at some point in time, let’s say in 50 years. I wouldn’t like for my current medical records to become publicly available then.
I agree but I think just having your own VM in the cloud solves this. If each user has their own IP then you can basically get E2E encryption between users with SSL so you don't need to worry about encryption as a developer or user. I really don't like the idea of assuming people have access and relying on bulletproof encryption on a completely decentralized system. I would much rather trust a cloud provider that I'm paying for.
I'd rather pay for hardware I own than someone else's. (I accept the 'hardship'.) And that I can unplug should problems arise. (The cloud is okay for public things.)
