The clowd

From TFA:

I guess I was subconsciously coining a new term--which I so rarely do--this time, combining crowd and cloud into something new. I think I like it, even if it is a bit artificial

Some Sun engineers use the term "clowd" internally, and in the way you've assumed: clown+cloud, because they hate the use of the term "cloud" because the term evolved from a time when the cloud drawing surrounded by PCs and servers in diagrams of the Internet kinda implied "we don't really know what goes on in there". And, of course, at Sun, they like to think they do know what goes on inside that Internet "cloud".

It wasn't as strong an assertion as you made it out to be. Of course you won't be able to opt into being tracked/filmed/panoptified. You'll just opt into the auto-agent features that search out specific relevant information. In other words, although everyone will get to know anything they want, no one will have to know anything they don't want (what my boss did on his vacation to get tanned only on his groin region, for instance.)