@HoustonLively
I agree with you. My conclusion is: Everything must be stored on the corresponding Wave server (cloud).

http://www.waveprotocol.org/whitepapers/google-wave-architecture

Trust is the key if Wave owns your desktop.

We will see...

SpaceJazz

pm:
By the way, the next big thing is called GDrive. It´s a cloud storage service, rolled out by Google next time also a part of the Google App Engine. Available soon...