MySky will still cover these use-cases, and will even support users choosing SkyID as their "seed provider" so they're still able to log in using their SkyID seed through MySky.
When using MySky, you app will not be handling or using any of the user's private keys. This is for their protection and to increase trust in the Skynet ecosystem as we create a truly interoperable data layer. Instead, when you ask to write to SkyDB, MySky will handle deriving the necessary keys and signing any entries. Read more in MySky.
We don't currently support encryption in
skynet-js -- it's on our short-term roadmap, but you may need to still use the SkyID library to support encryption in your application.