Alma Whitten, a Google employee, wrote an article for the Sacramento Bee explains that yes, Google really does take privacy seriously. Though I don't personally have any reason to doubt her, I suspect there could be a lot of users that can think of reasons Google isn't as diligent as they should be.
Google – like any other company that collects data – also has a responsibility to protect your information. We know your trust is the most valuable asset we have, and as a result we have built extensive safeguards to protect the data we hold and help ensure your continued privacy. Only select Google employees with a legitimate and pre-approved business need – needs like stopping spam or helping a user directly with his or her account – can ever even access your information.
On the other side of the coin, there are people who would trust their lives with Google. Is putting this amount of trust in a single company wise? Or is knowing exactly where your data is, versus spread think across several providers, a great way to minimize risk?
Let's hear your Google privacy views/fears/stories in the TalkBack.