Trusting Google With Medical Secrets

Privacy advocates often are weary of Google’s services and the notion of trusting your life to Google. They’ll go nuts about a rumored new “Google Health Scrapbbook“, an online service for keeping track of one’s medical history. Potential partners include WebMD for integrated medical reference and hospital information and Intuit for medical expense tracking.
Is this another useful service, a privacy nightmare, or part of a government/Google conspiracy to intrude into our lives? All three? From what I can tell it’s rumor at this point, but I suspect folks would be a bit more leery of giving out their family medical records to an internet portal than they are to keep track of their dinner dates.