Basically its laid out pretty clearly (see section 11.1) that if you use the API to display *your* data, then you grant Google a irrevocable licence to do as it sees fit with your data.
Sure it says “You retain copyright and any other rights you already hold in Your Content. ” – first, to soften the blow, but then goes on to say “[to] publicly perform, publicly display and distribute Your Content. ” – I dont see how that is any different to saying they can do what they like with your data.
It gets worse if you have “business listings data”, as 11.1(b) says: “For example, if you create a store locator application, Google may use the business listings information from the store locator to improve the Google Services such as Google Maps and local search.”
- give your data away free to Google why don’t you!
Here is Ed Parson’s (Google Geospatial expert) take on the new TOS.