If you choose to 'Hide your location', you can hide from your Latitude friends all at once, so they won't be able to see your location. If you hide in Latitude, we don't store your location.I’m not worried about hiding in Latitude. I wish I could hide from Google!
Just before I published this post I came across an interesting article in Wired that goes into the legality of what Google did by collecting all this Wi-Fi information: "Former Prosecutor: Google Wi-Fi Snafu ‘Likely’ Illegal" Unfortunately, I hate the fact that it is only "likely" illegal and the crimes are only misdemeanors. The article is a good read if you have the time.