Not too familiar with E2EE. If Sync uses E2EE and Obsidian Mobile uses Sync, would 3rd party apps at the device level be able to access a vault? For example, would NeuraCache App be prevented from syncing cards found in a synced vault? Another example, would the Anki plug-in be prevented from reading “into” files in a synced vault?
You still have the decrypted folder locally.