Disclaimer first, I am a Google fan! Take my responses in that context.
It won't work with your iPod
This is an Apple issue.
They're too expensive
True, and you'll probably be buying additional storage on the cloud as well. But the admin $ savings for corporations and institutions will hopefully be huge.
People aren't ready to trust the cloud,
Storage and app providers will be judged based on their MTBF. as hardware vendors are now. There will be fallout, it's a new industry. But I'd rather trust Google or Amazon to protect my data than some software vendor who has a vested interest in perpetuating an insecure environment so he can sell remedial solutions.
It's a goldmine for hackers, says an expert at software security firm Kaspersky
See previous response!
Google can't do hardware and support,
They built and maintain one of the largest distributed networks in history. They designed and built the entire infrastructure; they are industry leaders in power technology, SAN, and of course Web technologies.
Their first foray into "consumer" products was eye opening for them, but it was the first. And no one can say that Google doesn't learn from their history.
Google gets too much control,
You could replace Google in this statement with: Microsoft, Apple, Oracle, IBM, Amazon, George Soros, Fox News, or any other entity that will push someone's buttons.
My final thought on all of these critiques; consider the source.