Complete FUD. Best article I've read on this is from The Verge. Google would be unable to create backups or thumbnails for example without these rights. http://www.theverge.com/2012/4/25/2973849/google-drive-terms...
I mean "publicly perform, publicly display and distribute such content", how on earth can you formulate that so broadly for a service intended to store private files??? And how after reading that can you qualify it as "Complete FUD"?
In depth analysis are interesting and everybody here understand that google is not going to be THAT evil in the short term, but the fact this _is_ formulated like that is very interesting and not fud at all.