For example: http://github.com/diaspora/diaspora/blob/master/app/controll...
There's no check to see if this is your photo or not. And before you mention it, the before_filter only checks if they're logged in, not permissions.
There are many, many similar things to this. Check out lib/encryptor.rb and shudder. I'm no security expert, but...
This is an alpha release. People shouldn't be using it, that's all. They should've put in an artificial limitation like max. 2 users with max. 2 pics each per server to avoid people using it.
The whole thing being in Rails is much more of a turn-off for me.
Realistically, though, so long as they don't get clever it might be fine. If they do clever things then review becomes very hard.
Rails 3 has been in beta for the better part of the summer. This means that many plug-ins (Devise included) haven't been able to keep up 100% compatibility. It's entirely possible that they've only implemented Devise for login authentication, but plan on expanding with something like Warden or Clearance for model/controller level security as the plug-ins come up to speed.
Our group started on a Rails 3 app back in March, and we learned early on that we should stick to our core app development, avoiding plug-in implementations until things stabilize. Hell, look at Bundler. The jump from 0.9.x to 1.0 broke our app deployment methodology between the beta3 release and Rails 1.0. We never even got around to beta4. When you develop using a beta framework that evolves quickly and breaks compatibility, you have to be careful where you place your efforts.
I'm not ready to lay down on the tracks and defend them here, but I don't think it's an impossible to assume that they just haven't addressed security yet. Maybe they haven't arrived at a framework choice. The fact that there is literally no security would seem to suggest this is true more so than if they had sparse security.
One aspect remains true, however. Anyone who deploys this and puts anything of value in it is asking to get body slammed.