Google Desktop - Privacy Warning

Here's a scary article: Google Desktop 3 Raises Privacy Concerns. Is Google intending to send text versions of your documents across the Internet encrypted or just as plain text? It's bad enough having your private documents uploaded to their site, but uploaded in a plain text format? Hackers are going to have a field day trying to intercept this stuff. What kind of data will they be able to gather? Social Security numbers? Credit Card numbers? User ids and passwords if you've been incautious enough to put them in a document?