I think this wave is a good thing. Its gotta be really cos its needed and its being done well. No question that its a good thing. Is it good as a VTT or the best way to play I don't think so. I agree that a VTT is too heavy to make into a single gadget. Maybe they could string a number of gadgets together in time and it could in the future make a great game portal but in its current state I don't think so. In fact I agree with Su-Liams quote too.
I think your right in that I am somewhat paranoid with the net. I don't use googlemail, or their apps, or just about anything that I don't have on my HDD. So I guess I am leaning on that side and I know not everyone does.
I have been reading about the protocol and its XMPP based - seems like short snips of XML over TCP. That's good and a very sensible robust format. I haven't used XMPP but I do know TCP and XML pretty well and I can see why they're using it. Google are pretty good at opening up and maintaining the free open source culture. Its just that I don't know why there's more than one license for it at mo.
So yeah, agreed on all fronts (well maybe all except the dice thing... ) and I am not anti wave but I still think its a square peg into a round hole at this point for RPG play over the net.