An incredibly liberal privacy policy, combined with cool features such as OCR scanning of all your pictures and PDFs will mean Google may know more about you than your mom.  You could upload some pics of your Disney World trip and a PDF of your hotel confirmation for next week’s business conference.  The next time you visit any web page using Google’s Adsense service you could see offers for hotels in Orlando.  Isn’t that kind of creepy?

Here is an article about the creepiness.

Most people are comparing it to Microsoft’s skydrive cloud storage or dropbox.  But the privacy policies of skydrive and dropbox are quite different from Google’s privacy policy concerning your files you upload to their servers.

Microsoft’s policy is actually pretty straightforward:

You understand that Microsoft may need, and you hereby grant Microsoft the right, to use, modify, adapt, reproduce, distribute, and display content posted on the service solely to the extent necessary to provide the service.

Google’s policy (the highlights are mine):

When you upload or otherwise submit content to our Services, you give Google (and those we work with) a worldwide license to use, host, store, reproduce, modify, create derivative works (such as those resulting from translations, adaptations or other changes we make so that your content works better with our Services), communicate, publish, publicly perform, publicly display and distribute such content. The rights you grant in this license are for the limited purpose of operating, promoting, and improving our Services, and to develop new ones. This license continues even if you stop using our Services (for example, for a business listing you have added to Google Maps).