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Google introduces Google Drive. One has to be careful to not miss why this is a big deal:

Google isn't simply pushing out a competitor for Dropbox. You have to read a bit in between the lines of the announcement, but Google is much more ambitious than just syncing files. Here is the MOST important line from the announcement, placed casually in the middle, but one that offers a glimpse at the future:

"Drive is also an open platform, so we’re working with many third-party developers so you can do things like send faxes, edit videos and create website mockups directly from Drive. To install these apps, visit the Chrome Web Store—and look out for even more useful apps in the future."

In Google's future, your computer is a thin client. There is no My Documents folder, as everything personal lives on gdrive. The Chrome app store becomes the new operating system. Apps will have access to your files, they will be able to search them, open them, and operate on them. You will never see the "Open file" dialog box again.

In this world, the concept of a file on your local computer in some folder does not exist. Your stuff is simply available to you from the cloud from whatever computer. The abstraction or concept of a "file" or "folder" will fade. Our children will not know what these words mean. They will see their pictures in a web interface with location and time overlayed, completely oblivious to the fact that it happens to be stored as a .jpg file somewhere on google servers and an associated .txt file that contains some meta data about it.

We are finally moving beyond (arbitrary) abstractions from mid 1900's. I like this future.
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Even though I have 18.5GB of free space on Dropbox due to referrals and the 2X education bonus, but I'm considering switching a paid Google Drive account because it seems so much better.
I think it hasn't reached its full potential yet, but Google has a vision that I haven't seen Dropbox fully articulate yet. On the other hand, Dropbox has offered me an amazing service for years that I've used extensively, so they've won some loyalty points-- I don't want to jump the ship the first moment something new and shiny appears.
One thing with Dropbox is that there's nothing keeping me stuck with them. That's a good thing. Google Drive might be a better product, but then, it might have so many added features I might end up relying on it... not sure if that's a problem!
I think it just allows them to do stuff like translate a document you've shared with somebody.
File or folder may wanish, but I for one would need an object and a collection of objects in that case, grouped by some property. It'd be like a media library, but properly done.
The vision is interesting but the reality of limited bandwidth and expensive storage means the future is more complicated. Whoever best optimizes what is stored where and when and how reliably while not neglecting any good storage or transfer ability is going to have the 'winning' system. It could be that a server at my home and the device in my hands is redefined to be part of the cloud, that would work for me.

Personal local storage is going to store big personal data, the data capture impoverished may be able to survive purely on thin clients but I don't buy it. I literally can't buy it, I have a few TB of stuff now that with this massives docs to drive price hike is now unavailable for uploading. I have to pick and choose and use a diverse collection of tools to access my data in different cases- streamlining that system is where we need to go.
Also I am not so sure about the reaction to this part of the policy: "When you upload or otherwise submit content to our Services, you give Google (and those we work with) a worldwide license to use, host, store, reproduce, modify, create derivative works (such as those resulting from translations, adaptations or other changes we make so that your content works better with our Services), communicate, publish, publicly perform, publicly display and distribute such content. The rights you grant in this license are for the limited purpose of operating, promoting, and improving our Services, and to develop new ones. This license continues even if you stop using our Services (for example, for a business listing you have added to Google Maps). Some Services may offer you ways to access and remove content that has been provided to that Service. Also, in some of our Services, there are terms or settings that narrow the scope of our use of the content submitted in those Services. Make sure you have the necessary rights to grant us this license for any content that you submit to our Services"

What if you cannot reach the cloud? Internet down? Or no power at home? You have to stop working? Does not happen often, but it still does more often than we want.
Best would be to have all your data on your cell-phone, being able to plug it in your computer, coupled with some fast link. Data always with me, anywhere, but also offline, just in case...
With Google's recent universal ToS, it may be more intellectually honest to cast Google Drive as some kind of sharing, or publishing, platform, than drive space. A "favourite" part of the ToS which really underscores this:

"Make sure you have the necessary rights to grant us this license for any content that you submit to our Services."
This is just my personal understanding of that sentence, but I think they mean don't upload copy-righted material to your Drive if you aren't the copy-right owner. Sounds like saying you shouldn't upload movies to YouTube unless you made it.
Exactly. It would be the volume on your computer on which you can't legally put anything you legally bought, only stuff you made yourself. To my mind, that is not a drive, but a publishing system. I would believe this isn't actually their ambition and intent, but it's the outcome of their unified terms, legally speaking, as I read them, and I think it bears surfacing.

Especially in light of computers like the Chromebook which would likely ONLY have a Google drive, as that's even a step down from 's iCloud, which happily hosts app store purchases for you that you "only" bought.
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