I always wanted to mess with building virtual filesystems but was unwilling to venture outside the standard library (i.e. libfuse) for reasons wonderfully illustrated in this thread and elsewhere. Somehow the idea of implementing a networked fs protocol and leaving system integration to the system never crossed my mind.
I'm glad more people are taking this stance. Large centralized standard libraries and minimal audited dependencies is really the only way to achieve some semblance of security. There is simply no other viable approach.
Edit: What's the license for this project?
I was thinking for the license I'd do GPLv3. Would that work for you?
that's a really good point and could be an interesting thing to play with as an extension. Since we potentially know which process is doing the "read" we could ask the user if it's ok to kill it. obviously the big issue is that we don't know how much has already been shipped off the system at that point but at least we have some alert to make some tough decisions.