The solution is to do client-side encryption, before sending your files off, across the web, to somebody else's servers. If you do this, you can keep possession of the keys (hopefully stored outside your web path, duh). That way, nobody can read your stored data, including the provider, but...
How many ppl are smart enough to do that?!?!?!?
I remember hearing an interview once, about intellectual property theft (pirated music, movies, proggies, et cetera).
One of the ways 'they' nab ppl is watching by sitting on busy routers, on the 'internet highway' and watching everything that goes through it. Supposedly, there's noting illegal about this snooping. If data goes across your router, it's yours. There are no user agreements in place.
Sending unencrypted anything across the web is just stupid, even if it isn't "sensitive information".
The point of the article is... that's exactly what happens, when you use Dropbox (and probably its clones). You're giving them access to your unencypted data, before sending it, and they hold the keys to the encrypted data, after you send it. Hello?!?!?