This is absolutely false. The regulation was promulgated by the Register of Copyrights, who is an executive branch official.
There are two services that I know of which offer truly secure online storage, Wuala and Spideroak. Jungle Disk can be fairly secure, as well. The former two use Java clients, and the latter is native.
Personally, I use Wuala and am pleased with it. There is one hole, though, in that it's possible to state whether a known file is stored in your account; if that's a problem, you could store it in a zip. That's good enough for me, so I use it for synchronization, backup, storage, and file sharing.
Apple already tried a gaming platform back in the day. It was called the Pippin.
Is this idea gonna fly?
Do we really need yet another Apple-controlled walled garden? Don't we have enough of those already?
When I was working for NASA, on the NISN network, we'd get these weird router crashes for the old Cisco router located at (or very near) the South Pole in Antarctica. It was always a memory problem, and I'd always have to call someone to get them to powercycle the router. It irritated me to keep bothering those guys, so I opened a case with Cisco TAC.
The TAC guy sent a terse response, saying that particular crash was a "transient memory error" due to "alpha radiation or sun spots." That really pissed me off -- Cisco TAC just gave me a standard BOFH response! I escalated, and swung the NASA club around some, and finally got a senior engineer on the phone. "You said this router's at the South Pole, right? So that means it's at very high altitude, with very little ozone shielding, right?" "Umm, yeah." "Well there you go. There's a lot more radiation at that altitude than at sea level. Our stuff's only rated for sea level. See if they can
I relayed the info to my contact at McMurdo, and he laughed and said he'd figure something out.
On a hunch, I checked the other two "high-altitude" routers we had, and sure enough, they both had a statistically higher failure rate for "transient memory errors".