I don't know how everyone else approaches it, but I just assume that anything uploaded to googles servers will be snooped using some legal loophole or another. I don't have time to study the TOS for every user hostile application in the world, so guilty until proven innocent is the only sane position I can see to take.
Right, you don't have to trust the good faith and intentions of these huge companies, just that they don't want to get sued to hell and back by the other huge companies that rely on their products. You can't trust them to do (or not do) anything that they haven't legally promised to do (or not do), but outright lying isn't as profitable as people think.
Yes, and you know when they've stopped following it, because they send you an email saying "we've changed our ToS" [after our legal department learned what our engineers have been doing all year].
I am the co-founder of a small by design company offering cloud services, and we spend a lot of time to make sure that our ToS reflect what happens operationally. Also money since we review it with a lawyer specialised in open source software. There are some other entities from chatons.org that care about such documents as well.