I kind of like it for that, to be honest. There's a difference between trusting the good intentions of a company as a whole, and the good intentions and flawless skill of every single employee of it and it's subcontractors.
I wonder if there's something about this approach that I'm missing.
Ask HN: wouldn't you prefer that your data is browser-JS e2e encrypted than server-encrypted or not encrypted at all? In the context of "this is a web app. There's no mobile app or desktop app".
I'm specifically talking about the (rather common?) case in which your threat model does contain morally misguided employees, black hat hackers and stupid mistakes, but not nation state level adversaries.
Carving out a much more complicated boundary around various kinds of lapses on the other hand muddies the water. It can still make sense, but it is difficult to convey that clearly. More than a pinky promise, less than certifiable security.
Also I would claim that black hat hackers could very well get into your production system and just inject some JS that exfiltrates cryptographic keys from users. It's blunt and far more easily caught than a targeted attack, but it can still possible and thus the system would fall short of that threat model.
Or you can follow the mega model where the hoster wants to protect itself from legal demands of monitoring user uploads that stop short of demanding encryption backdoors.
It is a fairly weak and narrow security model. Nothing that should be used if you need serious security against powerful attackers.