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Perhaps they could incorporate some homomorphic encryption so that your data can be processed in the cloud without it being readable.

Obliviously computing over encrypted data has a lot of potential, but there are still many technical barriers to overcome before it's practical on a large scale.

If you're talking about Gentry's fully homomorphic encryption, that's not going to be used in practice any time soon.

that's "because they are not evil", you know... People who are supporting Chrome cite they won't be 'locked in to Windows' as a key point, but they don't realize that the lock-in, in this case, will be A LOT worse..

Yeah - the bits most people create are hardly worth the platters they sit on. Chrome OS is for them. The people whose entire online existence consists of forwarded emails and flash games.