I noticed Google Drive was added to the Google toolbar this morning.

It appears that Google is turning Drive into more of a DropBox competitor. However, I don't see any reason to think that Drive isn't under the same TOS as the rest of a Google Account:

When you upload or otherwise submit content to our Services, you give Google (and those we work with) a worldwide licence to use, host, store, reproduce, modify, create derivative works (such as those resulting from translations, adaptations or other changes that we make so that your content works better with our Services), communicate, publish, publicly perform, publicly display and distribute such content. The rights that you grant in this licence are for the limited purpose of operating, promoting and improving our Services, and to develop new ones. This licence continues even if you stop using our Services (for example, for a business listing that you have added to Google Maps). Some Services may offer you ways to access and remove content that has been provided to that Service. Also, in some of our Services, there are terms or settings that narrow the scope of our use of the content submitted in those Services. Make sure that you have the necessary rights to grant us this licence for any content you submit to our Services.

AFAIK that would mean that Google could search my Drive files and use that information in perpetuity.

I'd love to know if anyone has found any information to the contrary.