@scalextrix, you are mostly right. The "jumbo dance" comes with key generation out of username and password (Similar to bip39 approach ) in order to be able to "forget" the key once user logs out for security. This part is still far from perfect, hence the reason why not publishing on main network yet. However, if everything shows-up to work well, I actually do plan to make exactly what you are talking about. An API that can be used for this purpose.

I'll try to make "node" config modular, so it can be used to deploy on node of the choice, as well as multiple round-robin nodes for added security.