Personally I am also surprised about the backlash. I can understand the desire not to relinquish control over who has your data. This is perfectly understandable. If they did not offer a way to where I can host my own I would likely be upset just like everyone else.
Furthermore on the topic of living individuals. As genealogists we know your name, date of birth, spouse name and a bunch of other information including mothers maiden name is considered public record. This is why security professional encourage you not to use said information for security questions. Especially if you own a house. You can turn off hints entirely and then it would not search anyone in the database.
alansogd is it safe to assume that RootsMagic websites are not susceptible to SQL injection attacks as they don't accept any queries? Are the databases when they are uploaded to the servers set to a permissions such that the webserver that you are using only has read access to the files?
Those would be my two main concerns about the way the system is structured.