I've been thinking more about this - Why? Dunno. - and have a few thoughts to add to the discussion.
Google has previously had "issues" when storing user-"submitted" data - the initial roll-out of Analytics comes to mind. (Am I right in thinking Gmail did too?) What happens if you can't download your data because Google is swamped? Obviously, nothing.
What a great way to transfer data, not between computers, but between people - from friends to terrorists. Did you know that Adobe's PDF - one of the filetypes Google will transfer - is the chosen format for al Qaida's newsletters, magazines & training manuals? Little surprise - that's what millions use PDF for. How long until perverts are MIME-64ing their pr0n into textfiles (or embedding in Word or PDF documents) and using Google as a vector for distribution?
If I switch the file extension from ".mp3" to ".txt", can I transfer my music collection? It occurs to me that GDS could be using FTP to transfer the files, so you then end up with text versus binary upload problems. So, what if I rename files with a binary filetype extension? Are there issues with transferring my (malformed) "spreadsheet" collection?
The GDS T&C. Skipping missing periods, missing links, missing buttons and unlinked links...
If I'm in, say Norway, and I speak English, which takes precedence? The Norway EULA in Norwegian, or the linked English language EULA (which is actually the American EULA)? In a Norwegian court, the Norwegian language EULA (I should think). So why isn't the linked English language EULA a proper English translation of the Norwegian EULA? After all, the two EULAs - Norwegian & English languages - are different. (And this is the case for most (all?) the non-English language EULAs.) Why doesn't the English language EULA identify itself as being the American EULA? That "In your language" heading - when used - is deceptively wrong.
Is it true? Are users in some countries, such as Australia, Canada & Germany, not going to receive future automatic updates? There is nothing in these EULAs about it.
The "Distribution" section (if it appears in "your" EULA). Nutshelling, you can redistribute with Google's permission. Software with this power & potential really should only be available from the source - Google - or a "trusted" third party such as Download.com (where it is available). How hard & how long before some kid (or criminal organisation) rigs a copy of GDS to send data to their server, and posts it on an innocuous-looking site for your downloading pleasure?
Complete aside: On the Italian T&C page ([desktop.google.com ]), the fifth heading - "Norme sulla privacy di Google [...]" - the "i" in "privacy" isn't bolded, even though it's inside a <b> tag. Select & deselect the word, and it's bolded. Reload the page, bolding gone. This is a IE6 "feature" I'm not familiar with.
Who supplies Google's servers & storage? That's a stock to invest in!