Keybase team member here. Interesting fact: git doesn't check the validity of sha-1 hashes in your commit history. Meaning if someone compromises your hosted origin, they can quietly compromise your history. So even the fears about data leaks aside, this is a big win for safety.
From an entrepreneurial perspective, this is my favorite thing we've done at Keybase. It pushes all the buttons: (1) it's relatively simple, (2) it's filling a void, (3) it's powered by all our existing tech, and (4) it doesn't complicate our product. What I mean by point 4 is that it adds very little extra UX and doesn't change any of the rest of the app. If you don't use git, cool. If you do, it's there for you.
What void does this fill? Previously, I managed some solo repositories of private data in a closet in my apartment. Who does that? It required a mess: uptime of a computer, a good link, and dynamic dns. And even then, I never could break over the hurdle of setting up team repositories with safe credential management...like for any kind of collaboration. With this simple screen, you can grab 5 friends, make a repo in a minute, and all start working on it. With much better data safety than most people can achieve on their own.
This looks sweet. I bounce between using Bitbucket or Dropbox for private repos depending on my needs. Bitbucket has lots of features but is a little annoying to set up a new project. Dropbox is really easy but doesn't always work well (e.g. git push ends up being effectively async). Your version of it looks to be just as easy as Dropbox, maybe even easier, but without any of the downsides. And it's encrypted!
https://github.com/anishathalye/git-remote-dropbox
Hosing your repo is way too easy otherwise.