The majority of people don't and will never care about their privacy, particularly when connected to the internet.

People who feel harmed by this will be upset and will hopefully understand that they were far more vulnerable than they believed, then take steps to insure that it doesn't happen again.

Some people will feign indignation at whats happened to her, claim to be boycotting google, then abandon the prospect when they see how much of a pain it is to change to another service.

Most people will never hear about this, and if they do, they won't really care. GMail works for them, they don't understand or care about their privacy. They have a service that works and is implied to be free.