This guy has been creating a lot of noise on Google+ in the past day. Although I have no direct information, the early signs are that Google is comfortable about why they terminated his account.
In general I don't care about this guy. More interesting is the issue of "my data" and "your service." I see this as equivalent to a landlord and a tenant (no matter how little rent paid). The landlord can, under certain circumstances, kick the tenant out. The landlord cannot under, any circumstances, hold or destroy the tenant's possessions.
Longer post here https://plus.google.com/115878613002809583306/posts/WsWj4CEh...