Well, for citizens we expect this to a degree, but this has little to do with spying and is more a "cop" thing. Can officer blow off Ohio issue a search warrant in Montana...ultimately yes. This proposal, on terms of "terrorists", could cut off as much as 16 hours for a search (guesstimate), but it would be highly ignorant to think it wouldn't be abused. I foresee Disney putting their "man" behind a desk that runs scripts to issue warrants for "terrorists". After all, people don't seem to believe that the "attack" on Sony pushes violation of copyright one step closer to being a terrorist attack, when it most certainly does. This it's all tin foil hatish I know, but is it REALLY beyond plausible?
This proposal will open doors for abusive control of citizens rights even further, even if it makes sense on cases of real terrorism. But who defines what as terrorism is highly questionable, but this proposal isn't strictly about terrorism, any crime will do.
Of course, why does this interest Google? Is Google planning a cloud service that issues warrants for the gmen?