Indeed, the ability to avoid the cloud and use PC->PC sync is sorely needed. The new(ish) ability to choose which folders to sync is most welcome, but until we all have no data caps and 100mbit connections (both up and down), using Skydrive to sync all your PC's data is still a regression in some aspects compared to Mesh. This is disappointing after all this time, I really hope the team can get that in there this year - if it's even planned, I realize it can make things more complex than syncing from one source.
Needs to be fully controllable from Explorer as well - shouldn't have to go to the web interface to share a folder with new people. I find newbies regularly get confused on this.
Funny enough I actually quite like the Skydrive web interface, it's a good example of Metro design principles for a m&k app that works well and looks nice.