Wouldn't you be able to effectively perform MITM attacks against any hidden service that uses the address you hash for them?
Edit: I don't think it would technically be MITM but you could impersonate any hidden service that you hash the keys for
Yeah, if I kept a copy of the key - which I won't because I take security very seriously. But - it's a valid concern, as there is no way I can prove it or myself.
I wouldn't start the next silk road using my service. But an random torponzi or fatty porn site or whatever, maybe it's worth the risk to some people. Just trying to make some cash using old LTC hardware. It is what it is.