From a political standpoint I don't know how many people would trust a Google product with security. Just the brand does not jive with the idea of security. Perhaps the product is good, I don't know. But FUD is in order considering the brand and its general past actions.
I agree. The Snowden leaks showing they're tight with NSA can't help that, either. I'll go further, though, with my main privacy argument against companies such as Google: the incentives of an ad-driven company are 100% opposite of privacy-seeking users. Expecting Facebook, Google, Yahoo, etc to protect one's privacy is ludicrous as they get more money for each privacy violation if not convicted in court.
The only kind of company that can be even semi-trusted is one that where you are the paying customer and their contract + host country's laws protect your privacy/security. Even more so if they have to contractually or legally pay huge fines for negligence. Align the incentives, then there's potential. If opposite incentives, turn 180 degrees and start running.
