HAhahah! I consider myself a security paranoid person, myself, and even I felt the same way as you. Here's the comment I left on the YouTube comments:

OH MY GOD I feel STUPID just listening to these two ladies. Their arguments are incredibly daft! They're casting off a technology that is BETTER than holding a separate piece of plastic, and far more secure by its very nature. If you lose the physical phone, it does NOT necessarily mean that anybody has your contacts or information in general (hello--CLOUD service??), PLUS when was the last time you had a plastic charge card with GPS so that it can be located or the ability to remotely wipe?

On another note... (Fair warning, since it's Wall Street Journal, and they tend to be arseholes, I don't know how long this will remain up there for free, or if it's even reachable outside of the click-link from Google. But, if you check news.google.com for the headline, I'm sure you'll find it there too...)
Ballmer Decries Huge China Sales Hole

As I read the article, I found myself nearly choking on the implication that computers sold without Windows automatically means PIRACY! :P I'm sure there's a lot of that too.. but as I understand it, aren't there also a rampant amount of open-source OS's being used in China? For an article about how Microsoft is slipping a LOT in market share, there seems to be an AWFUL lot of mention of Google Android in there too.

Here's a relevant tidbit for the Nokia fanbois:

The executive later travelled to India, where on Thursday he said Microsoft is looking to work with Finnish mobile handset maker Nokia Corp. to develop "next-generation" mobile devices. India will be a priority market for the company, given that Nokia is a market leader in mobile handsets in the world's fastest-growing telecom market and the second-largest market after China, he said.

"Certainly our partnership with Nokia is an important step forward with us...but the key there is not only to innovate on software, which we will work together over time, but also work on next-generation hardware innovations with them," Mr. Ballmer said while addressing a conference in New Delhi.

heheh... hoo boy. Sooo... let's PUSH PUSH PUSH where Microsoft doesn't sell well and keeeeep sliding that market share down while we ignore the greater markets? By their own admissions about how sales of hardware without MS is outselling hardware in general, this seems like a mistake. In fact.. doesn't this seem like a mistake that Nokia made before? History repeating itself? Couldn't happen to a better company than Microsoft, though. Heh