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Australian governments can't use Office 365. The data centre in Singapore and the Patriot act make it impossible. There are moves to remove some restrictions but I'm not holding my breath.
Nice goalpost move. I didn't say you have to sync with a computer. I said that if you do sync with a computer, you need the service. Your excuse, it's still crap but you don't really need it.
Frivolous lawsuits are also legal. I can't think of anyone with enough lawyers who'd want to build it. It would be a hobbyist that caved at the first C&D letter.
Same here but ATH.exe goes rogue every so often. Kill the process and I can't sync an iDevice until next reboot. I can't be bothered looking into it. I don't need to sync that much.
What notification email? Devices started having sync errors and I got a weird password prompt on the desktop. I assumed they'd nuked my account and went to the website. There's a link "If you received a password reset notification..." but you have to go to the blog for an explanation.