This argument is often put up for these kind of questions (the why trust anything you don't have control over), but there is a big difference from trusting a large corporation that might have to take responsibility and an obscure website.

That being said I have a rooted/Custom ROM droid phone and I have no clue whether or not it is logging my keyboard or any such thing as I took the easy way of installing the root and rom, but that doesn't stop me from using it and I have to agree that if you want to wear a tinfoil hat that is fine and dandy just don't go against those who choose to go unprotected.