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People are already Putting iPhone mounts in their car to use Google maps mostly hands free. And Maps Navigation isn't tied to just a phone. Android is Open sourced, there's no reason Google or someone else could make a dedicated GPS with this.
This is just the first warning shot. But it's going to be an ugly battle that Google is more well equiped to fight.
http://www.droidforums.net
And, if histories any indicaator, I'm afraid people will need to get badly hurt before anyone does anything about it.
1. The users' ability to understand what data a given corporation has about them and to view it
2. The absolute ownership of the users on their data and their ability to have it, in acceptable effort - removed, exported and mobilized (to another service provider).
3. Definition of "classes" of data sensitivity and what measures are required to protected the data at any such given "class" (not all data types are created equal; obviously i.e. your health records are more sensitive than your Flickr photo collection).
Companies would still hold the data, but this kind of guidelines can make that situation more acceptable to live with.
Since it seems that market forces haven't really succeeded in upholding the above guidelines, thus some degree of regulation is (sadly) required. The problem is that this would make it harder to maintain cloud-based services (thus hurting innovation), and even might render some business models (which enabled some free web-based services) ineffective... Still, in the long run - it seems like the least price to pay in order to maintain innovation (allowing new entrants to the market to compete effectively) and users' trust and freedom.
Another scary point you make is about PEOPLE becoming scared of Google's ubiquity. There are well recognized security concerns, and I still get a little wiggy if I find my data is being housed in ONLY one place (and/or by ONE company). If diversity is good for us in other areas, this might be another place to look for it.
The data concern is a tricky one. (Pardon my uber geek analogy here but) it kind of reminds me of Star Wars where the Emporer wins no matter what the Jedi do. He's playing both sides.
On one hand it's scary how much information one company may posses about you but what happens when multiple companies start "housing" your data and now multiple companies can start comparing multiple data points about you. Or even more likely we simply tell the World everything they need to know through our mobile/social activity. There's no way to know which way will prove the better way until one fails. An that could be a costly experiment.
Great post. It inspired me to blog a bit about why I decided not to run with Google to power my office operations (http://bit.ly/4q902e). There's just too much opportunity for things to go south. The title of your post was most apropo.
PS. Like geechee_girl and a few others, I'll be avoiding Google's Maps Navigation. I'm sticking with my Garmin ... code named "Bambi" (because I find myself saying "yes, dear" every time she talks). ;-)