I may have missed some fine print but the terms of service and the privacy policy appear to suggest that Google will not be looking through these particular files to upsell, etc. Regardless, $0.25 per year for data that you're not privacy-concerned about??
It's pricing, service and data security (backups, etc.) that this form of cloud computing has which is a huge advantage to buying, maintaining and backing up external USB2.0 drives and other in-house solutions. The TCO & cost/benefit comparison between the old method of purchasing/maintaining storage and this approach tells the story of where things are going. We can hate it with a feverish passion all we want. But the logic of this transition is hard to argue with

Now that high-speed Internet is common and cheap enough, the economies of scale that cloud services will offer the world may become the most disruptive technology chapter we've seen since the Internet was formed.