I guess I don't understand why they even need to store anything on their servers?

Hi bdittmer, we don't store any of your content, nor any of your passwords. We only store meta data that describes the organization of your documents and do so server-side so that we can add features in an upcoming release that we otherwise wouldn't be unable to add.

Storing stuff? Isn't that what my hard disk is for? If I wanted a cloud solution, I'd just log into Google Docs directly.

I would have thought the whole point of an app like this is to take advantage of the benefits of native UI, not to add yet another point of failure.

Got it. You guys should read up on iCloud :)

You need to be way more transparent about what you're storing and why - a native client app implies nothing in the middle.