More than one response in this thread has been along the lines of:
"If you don't have something to hide, what are you worried about?"
This argument completely misses the point. Now, I don't have a problem with GMail or its policy. What I disagree with is the idea that desiring privacy = up to no good.
First, there are completely legitimate business reasons a person might desire privacy. Perhaps your company is planning a big merger/takeover or something. I don't know from business and stuff, but I think the example is clear that there are plenty of times a person wouldn't want their email read when they aren't doing anything wrong.
Secondly, a right to privacy is a basic human right granted to every citizen in civilized countries (some might say that such a right is yours whether or not your local government recognizes the fact). Enjoying the dignity and respect afforded to you simply by being a member of the human race should not give intelligent people the impression that you are up to some nefarious shenanigans.
This "If you're not hiding drugs in your closet, then you won't mind if I search it" argument is immature and irresponsible. I find it's usually made by the same folks who find it unpatriotic when a citizen exercises other rights, such as free speech or civil dissent.
But, as far as email (and other internet transactions) is concerned, netizens usually just don't realize they have so little privacy. This is because, as human beings, they assume they have privacy, not vice versa.
There is always encyption (which I have more faith in than another poster had). But most people find it isn't worth the extra effort, although they don't conciously realize they are giving up one of their rights. Another problem with encryption is as above -some nitwits think that because you don't want just anyone reading your communication, that means you're probably communicating concerning something evil. But, realize, every credit-card transaction, every forum password you create, that all uses encryption and is an attempt to exercise your right to privacy.
Does that mean you have something to hide?
Sorry so long.
rr