Isn't this how the movie Terminator gets started? I guess I'm just not so convinced that I want a 2nd party being my end all be all to my personal computer stuff (especially with stories like
this running rampant)

I'm a Mac person but not a fan of .mac so much to the extent that I would depend on it to be my "backup". I'm a fan of something tangible that I can reach out an touch. And since hard drive space is ridiculously cheap (1TB for $600.00 or less) why not have your own data store?
But "for the fans" here:
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Google's rumored "GDrive," a service that would enable users to access their PCs from any Internet connection, could kill off the desktop computer, The Guardian has reported.
The GDrive, unconfirmed by Google, is reported to launch this year, with tech news sites calling it the "most anticipated Google product so far."
The Google drive would shift away from Microsoft Window's operating system, in favor of "cloud computing," where storage and processing is done in data centers. Users would no longer have to rely on their computers' powerful hard drives.
Home and businesses have been turning toward web-based services, such as e-mail — including popular services Hotmail and Gmail — and photo storage, such as Flickr and Picasa. Users would no longer have to worry about their hard drives crashing, since data would be saved on the Web, and can be accessed from any machine.
With the GDrive, a PC would be a device acting as a portal to the Web, enabling users to think of their computer as software rather than hardware.
Google refused to confirm the GDrive, but acknowledged the growing demand for cloud computing.
"There's a clear direction ... away from people thinking, 'This is my PC, this is my hard drive,' to 'This is how I interact with information, this is how I interact with the web,'" said Dave Armstrong, head of product and marketing for Google Enterprise.