You see what happens when you give your employees 20% of the time spent on the job, to fiddle with any idea they come up with? They create Google Secure Access.
Google Secure Access is a downloadable client application that allows users to establish a more secure WiFi connection.
There is also a privacy policy and download page (which I seem not to be able to access).
I believe InsideGoogle was one of the first to cover this, followed up by Danny with his security and privacy points. Lots of other discussion in the blogosphere as well. Even Reuters wrote about Google plans own WiFi service: Web site.
Forum discussion at Search Engine Watch Forums & WebmasterWorld.