I for one am worried about GMail and Google docs as much as anything else.
"What a great idea! Lets give Google a copy of every corporate document we've ever produced! Wait! Hell! Throw in all our email too!"
You do know that most of the ads in Docs and GMail are based on your data, right? For people that use their services frequently, Google knows everything you look for online, every word in your emails, all of your documents... this 'Google Location' stuff? Yea, now they know where you are too. Google checkout?: Everything you buy. Google Calendar, AdSense...you get the picture.
The list goes on and on and on. Even for people that don't use them that much...if you could see the data they (probably) have on you you'd shit yourself.
Then, after all of that...you can just start to consider all of the top end data centers and dedicated fiber they've bought up over the years. They own basically the most advanced consumer satellite imaging system on the planet. Now google andriod is in your phone...
HOWEVER. They seem to have been trust-worthy with all of this so far. I use their search and checkout services myself. One of their core values has always been that you don't have to be evil to make money, and good lord I hope they keep that slogan.