@Breckl
Interesting and gutsy post, I share these concerns. Unfortunately I think cloud or no cloud this really is more of a losing battle with power than anything else, that is if some have to snoop they will. The only "safe" option is a computer sans wifi that never joins the network.
Having said that I do agree it's both ridiculous and tragic the way privacy and legality of state (and other) authority is handled in the U.S. It's a wave from the dark ages, and what's more alarming is that not only fewer and fewer people share these concerns, but a younger generation seems to be the least resistant (and they are the ones who should have been the most) of all and the ones who might even consider it natural to leave in a big brother type of nation and world, case in point facebook.
Perhaps one of the most chilling quote I 've read about this is from the archetypical big brother co., google. Do no evil they say as a company moto...more like do only evil:
Eric Schmidt: “If you have something that you don’t want anyone to know, maybe you shouldn’t be doing it in the first place.”
http://www.youtube.com/watch?v=A6e7wfDHzew