I'm not sure I would use it though. I prefer to manage my own wallets and am kind of paranoid with trusting another service to hold them. Also, even if I used such a service, I would still do manual backups just to be safe. So I don't think this would be very useful for me.
True Kabal, however, there are a group of people out there that use such services to store their wealth. There are also people with less technical knowledge than you who would like to outsource the problem of security as much as possible.
I think there is a need for the service, the question is how much and who?
We should launch a new coin, for buying secure storage with, and see how the service is priced by the market
