"8. Our service may automatically delete a piece of data you upload or give someone else access to where it determines that that data is an exact duplicate of original data already on our service. In that case, you will access that original data."
In my limited understanding of the Way Things Work (tm), that MUST mean that the data is not encrypted until after it arrives at the mega servers. Therefore, Kim and his mates _DO_ have access (albiet temporarily) to the actual data you upload.
My backup provider (Backblaze) provides a client where the data is encrypted on my machine and they as a provider never even see my unencrypted data.
Now I completely understand the mega model would probably fall apart if everyone uploaded the final of Fringe and they had to store that identical file 1000 times - but you should be aware. Mega DOES INSPECT YOUR FILE IN AN UNENCRYPTED STATE. Or at _least_ in an encrypted state that is not unique to you - as seems to be the big push (everyone has their own encryption).
Cheers - N