Oh, Suuuuure!
The Register has contacted Microsoft to learn what security measures are in place for the cloud-based recordings and will update if a response is forthcoming.
Don't hold yer breath! But were there to be a response it would either be:
1) All user's "special moments" will be kept with the highest level of security and privacy Microsoft can provide.
2) All user's "special moments" will be mined for location, and product information, and can and will be sold to the highest (and probably second highest) bidder, verbatim, at our sole discretion.
Answer 1) will eminate from the marketdroids, and will be a complete fabrication. (C'mon, "highest level of security and privacy"? From Microsoft??? Shirley, you jest!) Answer 2 will be the truth, and will never see the light of day unless leaked from an internal Microsoft memo.