Is SaaS CRM Privacy Moot?

A few conversations on SaaS based CRM have recently centered on privacy. The SaaS problem regardless of solution is privacy and integration into core corporate systems. Always has been. Always will. There needs to be a dose of reality though. Cloud based e-mail is reality and many companies are moving that way. Those systems have the same or greater privacy concerns, yet that never seems to be the objection. Maybe if user adoption was higher on CRM systems, they privacy question would be moot.