You really think that's what the derivative works thing relates to? I highly doubt that... changing the file format of a document and saving it for your use is not a derivative work.
A derivative work is taking your data and adding to it, tweaking it, mashing it up with some other data and releasing it to the public...sort of like what google does with the SERPS already...hey wait... :-p
I hate that I have to divine Google's intentions now. Whenever I use anything Google, the first question I now have to ask myself is "Just how much is Google going to screw me over, and in what way, when I use this service".
It's a real shame....and its why I use Google as little as possible. Whenever I find any remotely similar product or service I immediately switch.
Apparently Google doesn't understand this massive shift in user perception...they'll figure it out eventually when they lose enough market share...
Those terms may be standard for "countless websites" but Google has lost all credibility IMO as of recently for things like this, which is why people are freaking out about this. Otherwise people would give Google the benefit of the doubt.
We don't trust Google anymore... they are evil. THAT'S what this furor is all about.