@Adam - Good article.
Here are the data and privacy FAQs for Google Apps.
And here is a quote from the FAQs contrary to your statement above. I hope this helps you understand how Google treats your data a little better.
"Who owns the data that organizations put into Google Apps?
To put it simply, Google does not own your data. We do not take a position on whether the data belongs to the institution signing up for Apps, or the individual user (that's between the two of you), but we know it doesn't belong to us!
The data which you put into our systems is yours, and we believe it should stay that way. We think that means three key things.
We keep your data as long as you require us to keep it.
Finally, you should be able to take your data with you if you choose to use external services in conjunction with Google Apps or stop using our services altogether."
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