I wonder what THAT license agreement looks like...

Google seems to have released a version of their desktop search program that sends results back to Google. You can hence search your desktop ... remotely.

EFF discourages the use of it...

I really wonder what the license agreement says. I also wonder what they can do with your data and what they could be forced to do with it. I'm amazed people would want to use this. It's one thing to trust a company with a subset of your data. It's another to trust it with all your data. It's particularily troubling if that company can use the data for their own purpose.

When we accept to watch ads to have TV for free, the compromise is well understood. You watch the ads, you get free tv. In this case, it's harder to see what you are giving up, but there is no such a thing as a free lunch, so it's really a question of clearly identifying it.