Only think I store locally are temporary files and my music.
I store all my thoughts in my Google Notebook, all my docs on Google Docs. This is a lot of trust. What happens if my Google Account just goes away?
What would make me feel better about the storage of all my information not from a privacy point of view, but from a backup perspective.
I have thought about using another Google Account and the Google API to move the data from my primary account to a secondary or backup Google Account. Would take some time but could be done.
Now I am also thinking about storing at Amazon S3 or Amazon SimpleDB when ready.
I will let everyone know when I make a move on this.