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I agree, and I don't allow Google to do this. If you use GD on a private machine, opt out of sending personal info, and don't mix private/public searches, then I'm convinced (based on other stuff I read before installing) that it's effectively sealed off from Google. The dangers mentioned occur when a machine is not public and when one opts to mix Web searches with desktop searches (as I'm sure some folks will).
Of course, this is based on what they say they won't do, etc., so there's always some measure of suspicion along those lines.
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