They say "too good an offering, too good to be true." MEGA, an online storage service and spiritual successor to Kim Dotcom's MegaUpload, offers 15GB presumably end-to-end encrypted storage services (it's 35 + 15GB for the first month or so, later it drops to 15 and you have to invite others to get it back).
As usual, without an auditing, there is no way to confirm Dotcom's promises (Free Softwre should make this moot). But thankfully, there's still a chance to guarantee that you won't have to trust him, or any other host as a matter of fact: preventive encryption.
If you PGP-encrypt your data before it gets uploaded, you won't have to ever care about what the host can read. For stuff that changes little or never (images, etc), this is borderline perfect.