Google v. Microsoft

I'm sure most people will have seen this already:

Google has improved its Google Desktop PC and Web search application by adding to it a panel that provides information from a variety of sources. Google Desktop 2.0, which is in test, or beta, mode, includes a feature called Sidebar that gives users access to e-mail, news, weather, photos, stocks, and syndicated Web site feeds. Google Desktop 2.0 also features a toolbar for users of Microsoft's Outlook e-mail client, which lets them search their messages and review results from within Outlook.

Ok so - I get it. Google, fresh off of raising $4B last week, is looking to shake the mighty mighty MSFT tree. But does this Google Desktop actually work? Does it do anything really that useful, or are we simply seeing that Google is going to maybe, eventually try to get in Microsoft's face.

Apparently this Google Desktop v. 2 sits on your desktop and instantly refreshes your email history (Gmail and Outlook) as well as other handy bits like a RSS feed where you can stream the latest from your favourite blogs.

So has anyone downloaded it? Feedback? Plus what do people think about the hyper-personal-customization that Google is pushing here? Even though the company has a vaunted "no evil" policy (which HAS to be a shot at the Evil Empire) and say that no personal information will be kept - I'm slightly iffy about Google being able to track that...