Yes. Its run by Fluffypony. Does some magic where your private keys are always kept client side, so yeah. I've kept some monero there for a while.
Of course, has all the stipulations of a web wallet. (server could be launched to the moon and then you have a really cold wallet you can't access)
re: GUI - word on the street is that its in development. My general understanding (and it might be just mine) is that dev team wants to get internals right before releasing GUI, because a fancy GUI with shitty internals is just a polished turd. As far as I know these internals include the database branch, which has been running stable for me for over 2 weeks. (gets the blockchain out of memory)
I forget what some of the other internals are. I don't know if i2p is something they're trying to do pre-GUI.
Probably another they're pushing is smart mining - operates similar to BOINC client, wherein your CPU will hash monero while your computer is sitting idle.
There's been some other pull requests, but I don't understand them all.
Gingeropolous, with your unofficial noob hour monero dev report, signing out.