A few years ago this would have been a joke. Now it's turning in to reality in USA. According to this article, cities are beginning to use Google Apps and their "cloud" to store higly confidential files.
I don't think Google is "evil". Not today. But when more and more valuable data is owned (or stored) by Google - the data will be more and more tempting for cyber-criminals, Mafia and non-friendly governments. What if Russia or China buys the Google stocks? Or what if Googles "cloud" is hacked by the Mafia, or copied by a muld placed deep inside the company by forigan agents? It's probably true that Google have better basic security around their data than many cities does (the Swedish police for example, had no root password on the Linux server with their criminal database) - but it's alot easier to hack one big "secure" cluster, than it is to hack hundred of thousands of small servers, keeping just bits and pieces of the Big Picture.
I think it's time to make George Orwells excellent book 1984 obligatoric reading for politicians and journalists in USA and Western Europe. If Google gets access to medical records, police records and social service records - they will know alot more about you then the evil "Big Brother" from the book could even dream about.
I think it's about time for people to get seriously concerded about their privacy.