Google's user agreement problem

A few blogs and news sites have noted the hot water Google got itself into this past week when it changed its user agreement for  Google Docs and Spreadsheets.  The part of the user agreement that is causing problems says:

By submitting, posting or displaying Content on or through Google services which are intended to be available to the members of the public, you grant Google a worldwide, nonexclusive, royalty-free license to reproduce, adapt, modify, publish and distribute such content on Google services for the purpose of displaying, distributing and promoting Google services.

Google Australia has responded to concerns by saying:

We don't claim ownership or control over content in Google Docs & Spreadsheets, whether you're using it as an individual or through Google Apps.

Read in their entirety, our terms of service ensure that, for documents you expressly choose to share with others, we have the proper license to display those documents to the selected users and format documents properly for different displays. To be clear, Google will not use your documents beyond the scope that you and you alone control. Australians' work documents and (soccer-oriented spreadsheets) are not going to end up shared with anyone unless the user expressly wants them to be!

So what's the impact on those of us who are using Google Docs?  I think we should believe what Google Australia has said.  However, it is a reminder that we're using a service that we do not control.  With that in mind:

• Remember that you are storing information  on someone else's server/service.  Do not store proprietary or confidential information there, since the service is not under your control.
• Don't store anything there that could cause problems if released.
• Take time to read those user agreements.  If you don't like what it says, don't use the service.
• Find and use other services/methods for collaboration so that you are not totally reliant on Google (e.g., Zoho).