I have for about a year now done all my work out of Dropbox (via a symlink from ~/src) it works great for multiple machines and has added advantages, eg. I never worry about deleting files that aren't staged anymore, as I can undo the delete from Dropbox’s website.
Git is for long-term version control, working out of Dropbox is like having a script running that stashes and unstashes every change you make so that its in the git-reflog.
There are occasionally conflicts, but I've never actually gotten a corrupted repository. All I ever do is go with the latest version of things using 'find' to delete the conflicts.
Git is for long-term version control, working out of Dropbox is like having a script running that stashes and unstashes every change you make so that its in the git-reflog.