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DINGDINGDING We have a winner. This is most likely why they don't support WebDav (where you could easily employ encryption layers over a standard protocol)

They should just give up the pretense they're providing a service and make it free.

We're the product.

It was dropbox who let their password protection be disabled so anyone could log in to anyones account(1).

I dont see google drive as being less secure, you can still use truecrypt or boxcryptor or encfs.

1: http://www.pocket-lint.com/news/110650-dropbox-error-login-w...

Yes, huge failure there on their part but they're still more privacy focused than Google will ever be. Google has a lot of badness to undo before they should be considered safe.

If you are worried about privacy, you should probably encrypt your files with something like TrueCrypt.