The industry has to figure out how to deal with privacy concerns, because a digital assistant which is continuously aware of your location and what you're doing will be tremendously useful. It's a little friend in your pocket that we won't be able to imagine living without.
Traffic jam ahead? Got you covered.
Can't remember someones name? I've got it here.
Need to remember the name of that great you discovered last time you were in this area? Got it here.
Looks like you need an ambulance.. it's on the way.
Privacy issues abound, but possibilities are endless and people _want_ these features. At present many of the benefits from a smart phone that we have become accustomed to are only possible because of data harvesting. Perhaps as hardware continues to evolve, and these features commoditized we can convince organizations that we will actually pay for the services if we can have greater control over our data.
Thanks for sharing your views on what is "creepy". Not everyone agrees (as can be seen from the comments) and I have a feeling that what feels creepy today will seem normal tomorrow, but your concerns are valid.