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Because we've weighed the costs and benefits? I don't use it for anything particularly important--it gets to see the coupons Borders sends me, the HN Monthly, and that's about it.
If the Daily Mail thinks they're creepy, that's as good a reason to trust them as I've ever needed.
Agreed. "Hurrah for the Blackshirts", "Sturdy Young Nazis" and all that.
I don't personally use these services, so I can't confirm this myself, but does anyone know if this statement is/could be true?

"On the one hand it is free, but then so are Hotmail and Yahoo - which both also rely on advertising, but which don't appear to trawl through your emails and hit you with intrusive ads within milliseconds."

I find it hard to believe that Yahoo and Hotmail don't target ads... seems to me that maybe Google just does a better job.

Maybe I would pay Google $4.99 per month to use all it's products (not just mail) without Ad's and high privacy settings.

However, I'm not sure if Google wants my money. Life is easy with an ad-based service.