... communicate, publish, publicly perform, publicly display and distribute such content.
That's quite clear. They can do basically ANYTHING with your data. PERIOD. Microsoft TOS says that they can access your data, scan it, and use it to improve their services, but no where does it say that they can publish it, distribute it, or make it publicly available. Dropbox, doesn't have anything like these, in fact they need your permission to do just about anything with it.
Sorry, not all services are as bad as Google's TOS'. You have Picasa on your machine, guess what, they can scan the pictures on your computer and do what they want with them. You have Chrome installed; they can monitor everything you do online and even what you do on your computer!
Oh really, I suggest you read it again? How else are they able to take your upload photos and distribute them to your phone. And if you give someone the link to a photo to make it publicly available? How do you think that happens? Read their TOS again.
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