Nice, but you still can't use this for your privacy-aware customers.
The former is a valid position - if a fairly harsh one in the current tech landscape. If the latter however - I'd like to see a more fleshed out explanation as I don't see Google being much of an outlier on this front.
Government entities, for instance.
Google has a dedicated cloud environment for governmental agencies: http://googleforwork.blogspot.pt/2009/09/google-apps-and-gov...
So what about foreign governments?