One thing is that the phrasing of Google's terms is more open, more importantly: I would rather like to store my files with someone that are in the business of storing files - than someone that is in the business of making "everything" searchable (for anyone?)
Exactly. It's not like Vinton Cerf and Bob Kahn et al could foresee what they were facilitating for when they built the Internet. Bring on quantum computing, and lets see what awesome stuff the rest of us can build on top of it
In our society, my take on this is that one shouldn't try to understand everything. We get smarter as a whole if different individuals focus on different areas. I'm not saying no one should collaborate, but 6 billion jack-of-all-trades, master-of-nothing simply is not smart enough to care for the next billion.
Read "The Shallows" by Nicholas Carr, it discuss this very topic. Humanity had the the same discussion when the printing press became normal. People could start to look up things in books instead of remembering everything (analogy: you're searching the interwebs).
http://awesome.naquadah.org/