RE: "Seriously.. despite all the controversy it has stirred up.. if you don't have anything to hide.. who cares"
That is, of course, the crux of the privacy argument and even exactly the sentiment Eric Schmidt was expressing: "Only bad people want privacy."
Even defending those that want privacy is hard to express. Why would you want privacy? What do you have to hide that you don't want known?
So here are a few off-the-cuff points for privacy:
* There's a quote out there (google it--lol) that goes along the lines of "You don't need privacy to protect you from the government you have today, you want privacy to protect you from the government it may become."
* People's ideas of what's acceptable to share are different depending on the times. Maybe a miniskirt is no big thing today. Maybe by the time she's running for senate miniskirt=whore. Maybe you comment on a friend's private facebook account. Maybe last week Facebook just made all that very, very public (http://yro.slashdot.org/story/09/12/13/2028219/Facebook-Founders-Pictures-Go-Public).
* On the last vein, Do you think if today were 1929 you'd hesitate to put that you were Jewish on your online profile?
* Even publicly making a stance on pro/anti online privacy costs you in some way. Certainly anyone pro-privacy had better have a squeaky clean past present and future. After all, anyone that uses scroogle.com and the like are exactly the wingnuts you'd want to track, right?
Nobody can see into the future far enough to know just what they'll regret, and just what it will cost them.