By that measure all bitcoin related sites, such as Mt. Gox, Installwallet, Tradehill and Flexcoin fall under the notion that the only safe server is one that is completely unplugged and bricked.
We had a huge uphill battle in terms of trust due to the thieves at Mybitcoin but I have to stress that if we as a community go that route there would be no such thing as a bitcoin related site, ewallet, or exchange... as all of them would require some sort of centralization in order to function.
I do disagree with your opinion, HOWEVER I do understand where you are coming from.
I never had coins at mybitcoin, but I felt the pain for months afterwards as people wouldn't trust any ewallet due to what happened.
Call me crazy-paranoid, but I don't use Mt. Gox and I don't direct new users to them. With the errors I have seen them commit and the time they were cracked, I suspect they have less bitcoins then their db have recorded for their users (unless their profits have been big enough to fill in the gap). Who knows what really happened that one day when someone cleaned their clock and they had to "roll back" trades. They push around huge lumps of coins that suggest the whole operation has a decent manual aspect to it, and coins probably get "lost." I wonder what would happen if everyone withdrew all of their BTC from gox in one day. Would there be a run on the bank?
Anyway, sorry to get off track on my tirade.
I don't trust any service to store the private keys of my wallet, and it would be wrong
to tell a new user who knows nothing about bitcoin or past mistakes to trust any of these services. Especially since there are ones out there that do not store your password on their servers (strongcoin, my wallet, and android wallet).
Centralized private key storage is a bad
idea and gives a huge incentive to hackers and the owners of said services to walk off with potentially hundreds of thousands of dollars worth of bitcoins.
Your faith in your own security makes me feel you have not dealt with actual cyber attacks yourself. And hell, if you have a few hundred thousand dollars of bitcoins on a server that you control, there are brute force techniques that are much older than computers that would be effective in getting your server password off of you. Bitcoin is being adopted by the criminal underworld and they will know where you live.
Sorry if that sounds a little too threatening, but it is the reason I would be careful in setting up an ewallet service (and I have considered this all myself at one point).