Regarding my two earlier blogs (Phone calls, e-mails and now search data. Where will Bush stop and Microsoft: No personal data went to DOJ) I just got this super-long email from someone that started with this sentence:
Google created their own problem by collecting this information in the first place.
So, let's think this through. You're an entrepreneur looking to start a business and you realize that one of the keys to your success is to keep certain information in a database. But then you realize that if you do, the Feds might issue you a warrant for its contents. Then you realize that the incident could become a headline in the news .. the sort of publicity (if you give in) that could hurt your business. So, you decide not to keep that database and in the process, may be selling yourself short of the complete opportunity that stands before you. Sounds like a chilling effect to me (on innovation, entreprenuerialism, etc... you name it).