What are the privacy implications of using Talk-to-Text? Given that the Android implementation of Talk-To-Text sends your voice to Google's servers, parses your speech into text, then sends the text string back to the handset, what are the privacy implications of using Talk-to-Text?

Does this mean, for example, that anything that I say to my beloved Nexus One is stored on Google's servers?

Do Google TOS refer specifically to this issue?
From Google's Mobile Privacy Policy:


  For products and services with voice recognition capabilities, we collect and store a copy of the voice input you make to the product or service and corrections you make to the returned recognition result. To improve processing of your voice input, we may also continuously record in temporary memory a few seconds of ambient background noise. This recording stays only temporarily on the device and is not sent to Google. If you choose to personalize voice recognition, we will associate your voice data with your Google Account.