Great. Now we can pretend we're secure instead of grappling with the problem that we're not. :)

Observe that SJCL's own authors warn about this problem.

Sure! Check out crypton.io. SpiderOak is going to be shifting towards this method. Although we already use client-side cryptography, it's in fat clients written in Python. We're going to reimplement the client using Crypton, which uses SJCL.