I don't see anything in there that doesn't show up with any other provider of online services. Don't forget to click through to the Privacy Policy page http://www.google.com/intl/en/policies/privacy/

The way I see it, if you are doing something you want to keep hidden, don't put it online. It doesn't matter if you are using a Google device, Apple or Microsoft. They all have the right to use whatever you propagate to one of their services. Your argument about a "secret court" has no relevance to Google's terms of use. If you are doing bad stuff online, someone's going to find it. If you are not doing bad stuff, "they" could make stuff up about your regardless. Sure, there will always be people making alternative interpretations of "bad stuff" but that has been happening since the beginning of civilization. 2000 years ago Christ died at the cross for treason and sedition. 320 years ago a few dozen died because of witchcraft in New England. And how many were persecuted because of McCarthy's paranoid delusions about communism in the 50's? The connectivity of the internet just changed the playing field a bit.