To me the benefits far outweigh the possible negatives. I realize my opinion on privacy will not necessarily reflect yours, but in my mind how much danger is there really in the calendar events of my boring life getting out? If I had high profile contacts perhaps I'd think twice, but nobody out there is knocking down my door to get at my cache of contact information for crazy family members.
While it's concerning putting all your eggs in one basket in terms of service, the best course of action there would be to just do a quick export each month of your contacts and calendar so you can easily grab them should something go wrong.
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