Ever heard of CarrierIQ? Look it up. Was a big scandal, almost all the major carriers were using it in the US: it's just an example of the sort of thing happening on your phone that you have no idea about.The problem with Android is that it's partially designed to keep control away from you, and in the hands of the carriers. That's not so good. Is APG better than no encryption? Well, sure, I suppose so. But you've got the same problem as iGolder.com, in the end -- a third party can conceivably defeat the encryption with ease if they choose to. I'm sure whether or not they actually have monitoring software intrusive enough to do so depends on the ROM you use, but Android is fundamentally insecure unless you really, really know what you're doing.