Location, location, location: why data sovereignty still matters

Almost exactly a year ago the Director of Security for Google Apps, Eran Feigenbaum, was telling anyone who would listen that the geographical location of data in the cloud wasn't a priority issue and that people should focus their concerns on the privacy and security of that data instead. Feigenbaum even went as far in one online interview as to suggest that to do otherwise was an "old way of thinking" at the time. Well I'm sorry Eran, but you were wrong then and you are wrong now.