Over at Schneier on Security, there's a refreshingly sensible piece on Google's desktop search.
As Bruce points out, all that information that people are getting so worried about being found by the tool is ALREADY THERE, so if there's a shared PC and you're worried about people seeing the data of other users... Don't give them the rights to see those areas!!
If you're worried that users using Internet Cafe's will expose corporate data by it being indexed when it's put on the Internet Cafe PC, set your policy and technical controls so that you're users don't put corporate data on untrusted machines!!
Sorry, but the flow of "Google desktop is evil" stories made me cranky...