That was my reaction, too. They just re-invented the teletype linked to a central computer. Why do people keep wanting to do that? I want MY data where I control it.
So does anyone with a notion of privacy and control.
I think, though, that we have a generation of younger folks with a much less pronounced sense of personal privacy, And that's why more people don't seem appalled at this.
Look at things like Facebook, youtube and all the ways people now make their personal self available to huge numbers of total strangers. My niece (a dum dum admittedly) has about 1200 "friends" on Facebook. That says a lot, and it's not good, IMO.