I think both of you have a point here. Sure, it is a bit of a paranoid thing to do, but it comes with essentially no disadvantages, so what's wrong with a bit of paranoia?
Also, Thork, weren't you the guy that steered away from Google services when the media highlighted their privacy policy, despite the fact that no major changes were made to the policy? Wouldn't that count as paranoid either? Again, I'm not trying to criticise the move itself, I'm just saying that there ain't nothing wrong with this kind of stuff, so long as it's kept in moderation.
IMHO, there is no such thing as "too secure" - the only question is whether or not the added effort/inconvenience from your security measures would bother you enough to reconsider.