...nor with some private customers. Microsoft seems to be overlooking that not all nations are so happy about "the cloud" as the average American seems to be. Germany for one, where I currently live, is much more sceptical of sharing personal data -- potentially motivated by some of its 20th century history.

But all that aside, a lot of people only used their computer occasionally, say to write a letter (again, Germany, a lot of bureaucracy still requires paper letters over here). Transparently syncing documents with an external server that you have absolutely no control over is really nothing such a user wants.