I actually think that any online sync host like this or like Dropbox should not have any chance of knowing what I store with them
Cryptography is readily available to anyone who cares to use it.
2. You ought to provide some kind of legal citation for your claim that a judge can order a service like Onedrive to shut down after just two allegations of illegal content.
End-to-end cryptography should be the standard.
Really? It was my understanding that True crypt was done for and I don't know of any other similar software that is open source (ie trust worthy).
https://www.grc.com/misc/truecrypt/truecrypt.htm
Although we all have reason to believe every single encryption tool out there is compromised, where does that leave us? Paralyzed. IMHO, we won't have 100% trustworthy software ever and we're better off using what we have then not using anything at all. Remember, in this thread we're talking about our privacy, not some top-secret project for which developing a encryption tool from scratch would be affordable (that'd be cool though).
But it is my belief that file hosters have a legal and moral obligation not to know what they are hosting for their customers. It is not the obligation of a host to look at a customer's files and decide what is ok and what is not. It is the same thing with Tor nodes or if you decide to encrypt files. I actually think that any online sync host like this or like Dropbox should not have any chance of knowing what I store with them. That's my private business and there is zero reason for them to know, is there?