The Register has an interesting article on the rumour history of the Google drive.
Rumours of Google offering web-based storage have been circling since 2006 when an internal presentation mentioned the GDrive.
After the most recent rumours surfaced, The guardian suggests that it could be the death nail for PC storage as we know it. However I am very specital about this. My reasons for this are as follows.
1. There is such a fuss caused by government wanting to give us ID cards and storing personal information in a database. If the government is not trusted with storing some of our data how will a private company be trusted with storing our data. This is a private company that has share holders and has to make a profit.
2. UK broadband speeds have just got 'up to' 50mb. This is only available to cable customers and only on the most expensive tarrifs. To be seriously thinking about using a 'GDrive' system as your primary storage, broadband speeds must be at 100mb or more. Just imagine trying to download a home video of the kids from the web at current broadband speeds.
3. Unless GDrive can be mapped as a conventional mapped network drive, files on the GDrive will have to be downloaded to a local drive to be viewed. This will mean the need for local storage will persist.
As with most things we will have to wait and see how it all pans out when the GDrive is released (if it is ever released!)