Via email from Chet:
In the past I have said I don’t mind private business getting overbearing as much as I do the government doing so. But when an industry leader uses the invasion of your privacy to it’s advantage without repercussions the rest of the industry is almost forced to follow along or get left in the financial dust. And once the technology is deployed and a profit can be made selling it to the government someone will do that too. It won’t matter how evil it is (read IBM and the Holocaust), if the price is right, and with a government involved the price could be you (or your company) continuing to survive, the information will be abused.
There needs to be repercussion for companies who do this. The “noise” and the boycotts need to start before the information is abused.
I know a lot more than I am at liberty to say and it hurts to bite my tongue this hard…
Note: Full disclosure—I work for Microsoft who is a competitor of Google.