Yes, with the same caveats as most other wallets--
- Weak passwords can be brute-forced (but Armory's KDF is one of the best among Bitcoin wallet software, so it takes longer/costs more to perform brute-force attacks).
- Your privacy is lost / transaction history is viewable (this is true of most, but not all, wallets).
- If your wallet file is stolen by malware, that same malware can probably wait for you to type in your password and then steal it as well.
- If you lose your wallet file with its encrypted private keys and any single private key associated with that wallet, then all of the private keys in that wallet are compromised (can be computed). This is true of many deterministic wallets.
Another great answer, thanks! Just wanted to know if it was safe to send around fairly publicly (for backup intentions).
If you're paranoid (like me), you may want to look for a zero-knowledge backup provider. I use SpiderOak myself; their software has always been a little bit twitchy (I probably spend an hour or so troubleshooting it every 6 months), but their security model appears to be pretty good, and their pricing is fair but there are cheaper ones out there. (I do let my wallet files get backed up to them).