b/c they were advertising a "safe" way to store your files and they seem to suggest in that advertising that nobody but you can view the contents of your files stored on dropbox. however, that is not the case...hence the flak. is

also a universal TOS that pretty much says "we can do whatever the fuck we want." doesn't make false/misleading advertising legal. besides, the TOS you linked to is a universal one...any "Additional Terms" will override them and are usually more specific. for example, http://mail.google.com/mail/help/terms.html