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I'm not really sure how desiring encryption for your data is being paranoid - if you're not asking this type of question when your data leaves a trusted environment, then you're doing a poor job of securing your data.

With that said, I would urge Omni to allow the encrytion of the data on the server. Let this be a user decision\option rather than remoiving the option altogether.

While Omni may do what they can to secure the data, they've stated up front that they can't guarantee security - what more do you need to hear to know you need encryption on the server?