The idea on the first glance sounds simple and useful: there should be a centralized KeePass Internet server, on which all users can store their passwords. By having Internet connection, you'd have access to all your passwords.

Note that this idea is different from simply providing webspace. KeePass 2.x already supports storing databases on servers using HTTP/FTP; that's not the point. The point is having one server for all users.

When creating such a server, there are several difficulties:

A fairly complex synchronization and caching mechanism will be required. You won't want to transfer the complete database, otherwise the service will be unusable for everyone storing attachments, etc.


Directly related to the previous point: in order to do synchronization, the server needs to be able to read and understand databases, i.e. some dedicated KeePass server would need to be written. While the transport way could be secure HTTPS, the server certainly has some user data as plain text in memory for some time. One needs to be very careful here. What to do if the server gets compromised? The security implications would be horrible, if an attacker could read any user data.


How to avoid server compromises? If a normal Internet server is compromised, the security implications are minimal: in the worst case all user accounts and data for this website are lost. But with KeePass server, whole identities would be lost. An attacker couldn't only impersonate someone on this particular server, but on the complete Internet and real world, depending on what is stored in the databases.

Therefore, banking-level security systems would be required for a KeePass server. Keeping PHP / ASP / Linux / Windows (or whatever will be used) up-to-date defintively is not enough here.


Basically you offer people webspace for their databases, therefore the service obviously will cost something. By charging people, they expect reliability and you need to make up-time guarantees. Therefore, at least 2 servers are required (by different hosters), which need to be synchronized. 
Summary: a centralized Internet server currently is out of range. If someone wants to start a company providing such a service, feel free to use KeePass as base application (of course respect the Open Source terms).

But what can and probably will be done later is a local intranet KeePass server (for companies for example). Employees could log in to the company's password server and use it. But a centralized Internet server -- no chance.