1) I don't want potentially naked fotos or conversations of my family online. Do you?
2) Regulations and customs change over time. Something ok 10 years ago can be damning tomorrow.
3) How do you maintain privacy of medical and lawyer conversations when anything can be released without permission?
Ironically, I had the same conversation with a lawyer ("I have nothing to hide.") who had teenage daughters. It really didn't sink in until I gave him those examples.
You always have to place absolute trust in someone, even Google. It doesn't matter what Eric Schmidt says. You're trusting dozens of companies with your privacy and your secrets every day, whether you realize it or not
Paper too, is in a sense, technology.
Your medical records may be a ream or two of paper. They don't get stored at your doctor's office, your doctor's office requests the records it needs on a daily basis. Medical couriers exist to handle emergency requests. Your data is stored in a warehouse with perhaps hundreds of employees. The threat model is different, not absent -- everybody from your doctor's receptionist to the warehouse workers have access, and can read or modify your data.