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How's this play out if one organization (with subsidiaries) has multiple FQDNs? Sharing across those domains makes the doc public?
Do no^H^Hmore evil.
Well yeah. They're releasing spiders!
Why not send an email to each domain with a list of everything they find? Or create an administrative 'audit' tool that will show all domain documents that are being shared publicly.

Do that a month or so before they push the hits into Google results and no-one would have any reasonable basis to worry or complain.

This is the option I believe that would cause your doc to be indexed: Allow anyone with the link to view (no sign-in required)

Simple as that. Just don't check off this option when sharing.

I don't know why everyone is so worried about this security wise.

Before, you controlled who could get the link. Now Google is giving it out too.
As people have pointed out, it is fairly easy to keep your stuff private still, but this does represent 'one more thing' that you need to do to ensure personal privacy. There is getting to be more and more overhead online taken up with making sure you have all the correct boxes checked/unchecked in order to ensure privacy. Facebook being a great example of a really obtuse system. I wonder what kind of startup opportunities these companies will carve out for little guys as they continue to slide towards the 'we own your data' side of things - after a certain point more and more people will desire a simpler, more private set of tools.
Its only for documents that are publicly published. If you don't want to share, don't publicly publish.