Here’s a very important note on Google’s belief of privacy:
http://www.eff.org/deeplinks/2009/03/exclusive-google-takes-stand-location-privacy-alon
The key point; “Google has confirmed that its policy will be to require a wiretap order before tracking a Latitude user’s location for law enforcement.”
It’s good to see that they still follow their, “Don’t Be Evil” motto. I’m sure this will prove to be an expensive decision, but it’s crucial to establish and maintain trust with their users.