Hello Everyone- I'm the one that started this thread and thought it appropriate to sort of report back. Here's what has happened since the original post.
After extensive testing, almost all the online services aren't very good at either backing up or recovering. I've tried over 7 or so. The best i found for OS X was BackBlaze, but even this had its issues. I have since given up on boxed online backup. I now syncronize very critical backups on to both Amazon S3 servers (using ARC) and Dropbox. If the problem of encryption comes in so I create a disk image in disk tools, encrypt/password protect it. This is only done for very very sensitive files thus, the disk image is very small. Everything else is simply syncornized without encryption.
The biggest problem I found with the online backup services is that they gobble up disk space (this is besides recovery issues if present). They create the backup file, and then start streaming it. With a MacBook Air and SSD, this is a bad architecture. On all of them, they took up 50GB or more. This is too much for an SSD. I also found them about a week or more behind. Not really the best performance, but its something if all else fails.
Since the Macbook Air goes everywhere I do, I simply count on Time Machine. I purchased a Server Grade 5400RPM backup drive that sits in a fan cooled enclosure. The drive stays ice cold (heat is the #1 enemy of a good HD). Also, in 10.8+, you can backup to multiple HDs. Do I? Yes I do. One is the one I mentioned, the other is a NAS that is located in another part of the office. Oh, this is important, the laptop and backup drives are never in the same place unless I am with it. If something happens, I'll grab my air and run. Thus, if something happens at the office while I'm not there, no prob. If something happens while I'm at home, no problem.
This brings up a problem... what if you have a desktop machine? Then I would go with WD MyCloud and also backup to there (as well as local). Only problem is that Time Machine creates monster backups, so thse will take awhile. Doesn't matter too much because its a desktop machine and this should only be used as a secondary backup anyway.
So, moral of the story... I never felt comfortable with the online services even as a final parachute. They also took up too many resources on my MBA.
Hope all this helps.