I heard the same thing about private WHOIS data a decade ago, and this year, despite all registrars offering WHOIS privacy by default and most for free.

I don't think your point is valid.

> But then again, you are free to upload 8TB of your data

Exactly, let the market do whatever it wants. And of course I don't mind you discussing your own predilections and why you wouldn't use it, but the broad blanket statement is just naive and too simplistic.

Even if the provider registered a limited company to their name and used that, how would it help? Who would trust such a small entity with their data?

The service is clearly targeted at people who are knowledgeable enough not to upload unencrypted sensitive data.