One of the biggest concerns about Google is that it would be another Excite@Home.
The @Home corporation took down Excite right about the time of the Tech Bubble Burst. If anyone remembers having an Excite email address, when Excite had all these free services to store some of your information online, you probably remember Excite having to delete all of your stuff as the company meltdown thanks to their business partners at @Home.
To call Google a company that is too big to fail would definitely be an understatement, especially if like Excite, they had no plan of action in the event the company collapses.
Companies like Google need some kind of living trust, much like a person who in the event of their death, can hold on to the property (physical or intangible), the data can be transfered to a smaller company that can take care of the data Google's customers asked them to hold on to.
Another Idea would be to create a government agency similar to the FDIC that instead of insuring money, insures data, either provides a backup of the data that you have posted online that you and only you can access it if the company you use to hold that data bellies-up, and provides compensation if that data is lost.
The only problem with having the federal government create such an agency is the fact that they are the Federal Government. There is information about yourself that they have that you can't access unless you are either a member of law enforcement or part of the agency that collects all that data about you. Which is stupid, considering if you want to know everything about yourself, including things that you don't know about that may prevent you from getting a loan or a job, you can never learn more about yourself to do anything positive or constructive that could offset the things in the past, or that you are doing, that can prevent you from living a better life that could help you be a better person.
If there is something about you that you want to know, it should never be a secret from you. And if there is stuff that you want to save, you shouldn't have to lose it because the company you entrusted to hold on to it was too big to fail.