Let me be the first to say here that mankind is going to regret this march into cloud computing. After seeing the Terminator movies are not people even a little scared by the thought? It may be in a fantasy movie but the concept is real enough and the government is crazy enough to take advantage of it.
To me the scary part is that the concept of cloud computing has been around since the beginning of the computer age so it's roots are symbiotic to the digital age itself. I'm not an anti-technologist or a Luddite by any definition (I mean I am here tying this on a computer) but it surprises me none the less.