I personally think this is dangerous that one company should have so much information on one person. It's a potential privacy nightmare.
The thing that's really disturbing also is that the law can't seem to keep up with the technological advancement either due to the lack of willingness to exert effort on the matter, or a sheer inability to keep up with it.
About two years ago IBM had proposed a device called a memory-aid which was to essentially use the various sensors on the phone, combine them together, and use A.I. algorithms to cluster the data, and enable the phone to act like a virtual assistant that would remember everything. They wanted to integrate this into all new cell-phones.
I expressed worry that such a phone could pose a serious privacy issue as it would allow identity-thieves and hackers to gather enormous amounts of information on people, and would also pose a way for the government to gather enormous concentrations of information on individuals. The FBI, for example has the ability to activate the speaker on a phone, even when the user has shut it off; it would be logical to conclude that they could do the same with a system like this. The NSA had engaged in massive warrantless wiretapping and could easily just tap all this data and analyze it, and has in it's possession petabytes of data.
(I posted a thread on the Computers and the Internet Forum some time back which featured several reliable links in it)
More recently I've come to the attention of an NSA development called AQAINT
(AcQuiring Answers for INTelligence), developed by ARDA, and IARPA
(a DARPA like organization geared specifically towards intelligence) which would effectively scan through all the data run through it, and using A.I. algorithms, could intelligently cluster the data and compile dossiers on everybody of such detail that it could actually gain insights into a person's personality, determine how they think, what they would be willing to do, not do, etc. Even people who worked on it, felt that it could be a potential privacy nightmare. They have been working on the ability for a computer to intelligently analyze visual data, which coupled to facial recognition, could allow cameras to be coupled into the equation. Combined with all the data aggregated over the internet, phone-calls, surveillance camera data,
(and of course, all the organized collected-data from these proposed IBM memory aids would be included), then intelligently sorted out, the government would essentially know everything about everybody, even insights into their personalities and thinking patterns. They'd know everything about everybody.
Here's some links which talk about AQAINT
http://www.darkgovernment.com/news/nsa-seeks-holy-grail-of-spy-technology/
http://fergdawg.blogspot.com/2009/02/nsa-seeks-holy-grail-of-spy-technology.html
http://www.informedia.cs.cmu.edu/aquaint/index.html
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http://www.informedia.cs.cmu.edu/aquaint/aquaintI.html
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http://www.informedia.cs.cmu.edu/aquaint/aquaintII.html
INRM