The main issue here is that your Javascript can potentially be owned by XSS or other approaches. If you own the javascript, you can send plaintext passwords or keys (which should have only been available to the client) back up to some server.
Even with that possibility though, I still think using browser-based crypto creates a more secure environment than the server storing unencrypted files. The author makes a good point in saying that you download javascript on each request, which makes it more susceptible to getting owned than a native-app, but I think a successful attack with this approach will still be an order of magnitude less severe than if an attacker owned a server full of unencrypted data. If the data is unencrypted, an attacker that manages to own the server has access to everyone's data. With it encrypted, the attacker will only get data from users who are using the site while it's owned.
Isn't that still a better option?