Call me paranoiac! Call me antique! Tell me whatever you want, but THEY MUST BE OUT OF THEIR MINDS if they think I would leave ALL my stuff on THEIR SERVERS. It might be faster than blinking, but I simply DO-NOT-LIKE the paradigm they're trying to spread. It reminds me the "old" ATM machines, when a mainframe did all the processing. I guess I don't have to recall it was a bank who owned the mainframe and that you must pay them periodically. I think the idea of avoiding the startup delay is really cool, but has a SMALL detail.. data is stored on GOOGLE servers, which means if Google powers down their servers you cannot access your data. Tomorrow Google could say, "ok, since now you must pay to use our services.." And that's when you regret your decisions. I haven't mentioned the fact they can do whatever they want with the data in their servers (yeah.. yeah.. the data confidentiality agreement - i don't think so). Nevertheless, I think it might be suitable for some people in some cases. Computers would require less hardware, which is a pro. In summary, I like the idea of speed up the OS, but I think some stuff is private property and must remain as such (at least for my stuff).
I generally agree with you about the absurdity of trusting one company with *all* of your personal data. Call me optimstic, but I hope the marketplace and its ability to respond to choice (especially in the post-Web 2.0 world) will help us. Google starts charging for access tomorrow? EvilCo* acquires Google with a draconian TOS? These events create another opportunity for someone, small and scrappy, to unseat Google's dominance, something of which I'm certain Google is emiently aware. What feeds their stock price, value, and product pipeline? We do, with every query, click-through, and gmail message. If we go away from Google, they fade into oblivion. Therein lies the beauty of the marketplace. It's also why keeping the pipes (i.e. open-source technologies) free (as in freedom) is critical.
* Of course there is no provision for the data that EvilCo already has in this scenario. If this were to actually occur, those of us in the cloud are screwed, only at the mercy of whatever protections governing bodies can provide.
Uncompensated overtime? Just Say No.