I just can't get used to working from my online tree, probably because I've used FTM far longer. I generally only edit things like the description field for a fact online when it won't update after an FTM sync. I guess this source citation issue I've found is a rather minor one in the scope of things but I've sent it to support anyway.
I like your idea of uploading a separate tree without media for public consumption. I have several trees. Some are public and I have to make sure certain media items are marked private so they don't show up online, either for copyright/usage reasons or because of those people you mentioned.
Anyway, thanks for the input.