No way in hell would I invest time and energy into this – for exactly the reasons you cite. Google has absolutely no credibility in the application department for me – we spent substantial time and effort teaching our clients how to set up Google Notebooks and iGoogle to name just a couple…. and suddenly POOF…. Never again.
Secondly, you hit the nail on the head with the data issues. Google makes a good % of its billions selling anonymous data parsed directly from its users. They SAY there is no personal association, but what about later? What happens if there happens to be a global terrorist with the same name as me – or one of my clients ? They’ve already caved multiple times to requests for information from the government (and governments of other countries). So no – Google cannot be trusted with anything important. If they want to sell a correlation of my path through the Internet – fine. i don’t do or go anywhere too questionable, and I really do like Chrome better than the other browser alts. But trusting Google with my mission-critical confidential client data that they’d find in some new iteration of “Google Notes” – no way in hell.
I’d go back to my paper Day Timer before I did that.