1) Yes. we do not support different passwords for different files.
2) All the existing files will be decryptable and openable with their original (different) passwords. Unless you disable the option, they will be automatically upgraded and re-encrypted with the one and only sign in password once you open then with AxCrypt 2.
3) No, we do not have access to your password in any more real sense than we always have – since our software accepts your password and does things with. Were we malicious we could have embedded it in a way we could have decoded in the original AxCrypt, or sneaked it away in any number of ways. The same applies now – your password *is* transmitted over an encrypted connection to our software on our server. And, if we were malicious, we could store it and gain access to your password. We’re not malicious. We don’t do that. We do not have access to your password except very briefly in our code when you are signed in. You also have the option to configure AxCrypt 2 to be permanently online. You only need to go online to update any Premium subscription (that will to be possible to do offline in the future).
4) The downside is lack of new features, lack of support, lack of maintenance, lack of support on other platforms (iOS, Android, Mac) etc. We will not update 1.7 for new versions of Windows.
Concerning the “lack” of different passwords, I would very much urge you to reconsider this strategy. It is a fallacy in thought. Please see https://www.axcrypt.net/blog/use-of-different-passwords/ for a longer discussion on this matter.
I urge you to get yourself one, really nice and strong, password and then convert your files to use this and the new format.
If you are sharing with other persons, we have the key sharing feature which solves this in a much more elegant way.