Looks like God^Hogle has extended its reach yet again, now letting us do Desktop Search. One thing they mention is "now you don't need to worry about where your files are stored!" Seems like the promise of WinFS but without being stuck within Longhorn.

Personally, I can't see myself moving away from maintaining a directory structure. Simply because if Google Desktop dies, how will I find my files? Maybe there will evolve the type of data recovery tools for Google Desktop like the ones which patch up your FAT or MFT when it gets damaged. But that extra layer of abstraction seems overkill.

Then, there's the tinfoil hat (which I don't wear) theory or Google extending its reach. It's got the whole web at its command, it's got all your vacation photos, it's got your e-mail, now will it get your documents too? And what if this public Google company has problems, might everything fall apart? Ah, I'm just speculating for kicks, really.

[Edit:]
Oh wait, it runs through your browser?? Now I have to put on my IT-administrator tinfoil hard-hat and ask, how long until someone writes a malicious BHO (browser helper object) or browser toolbar to latch onto Google Desktop and search your computer for "bank account number", "credit card number", "social security number", etc; sending anything it finds back to the malicious code's creator, of course. Oh, the Internet can be a scary place.