I don't see why software couldn't be provided (in a similar manner to RoamDrive or Gmail Drive) which automatically encrypted the data for transmission to the remote location. This (hypothetical) software wouldn't have to go through all the hoops that the originals do, because the remote server would be expecting this kind of file storage :)

Of course, you've then got the question of "is the security good enough? And if it says it's Blowfish, is it really Blowfish?"