The main issue isn't this particular lock out; it's that Google feels it's correct to police documents and lock out users in the first place. Honestly, at this point, if you're using cloud products and lose your data, the fault is solely your own. People should know better than to use tools like this for important data. For example, as a writer of fiction, Google makes it abundantly clear in their Google docs terms that fiction is simply not allowed based on their random criteria (see article for details). My point is that technical people have various solutions to this problem while non technical people are generally left behind. Even emailing a copy to oneself is not always a good backup solution (especially if Google is you email provider). As the world gets more digital, I see only regulation by law that can prevent companies like Google from being judge, jury, and executioner of their users' accounts.
This is an old issue from October, Google stated their systems detected false positives. Google claims they're not data mining personal information but using systems to prevent spam, piracy, terrorism, etc. The big issue here is business interruption and I agree with the other poster it's better to run your own NAS. Synology has decent NAS systems which even the lower end systems can run Synology Office, similar to Google's offering.
Run two sync'd NAS' in separate locations and run your own cloud.
Absolutely. I used to be a great believer in the Cloud until I ran into file-loss problems with Dropbox while travelling in a foreign country where I had a very small monthly internet allowance (2 gig per month).
Since then I have run my own internet file server over the last 5 years. It's not liable to 3rd party terms of use, and it's more secure from unwanted 3rd party access.