Without scrutiny, highly usable software that neglects security can seem heroic and revolutionary. Such may be the case for Google Desktop. Most users see the web-meets-desktop search capabilities and don't consider the security implications of making the boundary between google.com and the desktop so seductively porous.
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Security issues aside, I am a bit hesitant in providing my Desktop information to Google. The mass amount of data that they have at their fingertips is becoming a bit too scary, and I'm really not paranoid.