Comment by sqs

Wow. I think the more important point (as the article says) is made in the next paragraph, where Eric Schmidt reminds us all that data Google collects is always subject to seizure by governments. So, even if you do trust Google, by using Google you're creating a data trail easily accessible by governments. If you used your own server based (say) in the US, on the other hand, then realistically only the US could seize your data, and even then it'd be much harder than if it were stored on Google.