For 1, we're going to look into it (or something like it). It sounds like the service could be improved a lot if we could implement end-to-end encryption without the MitM dangers.
For 2, those kinds of products already exist, and we're not intending to compete with them (consider Apache Guacamole, linked by another commenter somewhere in the thread).
For 2, those kinds of products already exist, and we're not intending to compete with them (consider Apache Guacamole, linked by another commenter somewhere in the thread).