Imagine having a hot late-night phone conversation with your lover -- and then seeing an ad on your computer for condoms, or perhaps even Cool-Whip, if you're the kinky type.

That seems to be the idea of Pudding Media, a start-up company providing a Skype-like internet phone service with a twist: There are no toll charges, but Pudding will listen in on your calls and display ads on your computer related to the stuff you talk about. However, Pudding's voice recognition software screens out dirty words.

According to The New York Times, "The company's model, of course, raises questions about the line between target advertising and violation of privacy. Consumer-brand companies are increasingly trying to use data about people to deliver different ads to them based on their demographics and behavior online."

But it's the consumers choice. If you're concerned about your privacy, don't use Pudding! I'm sure lots of Americans will be happy to trade a little bit of privacy for free phone calls and, if Pudding can find a way to adequately monetize the service, this idea could take off.

As computer graphics and interfaces grow increasingly sophisticated, it's only a matter of time before the television broadcasters latch onto the concept and graft it into shows such as American Idol.

In fact, Electronic Arts (NASDAQ: ERTS) recently inked a deal with reality show developer Endemol Group (Big Brother, Fear Factor, Deal or No Deal) to create a virtual playground in which game players could take on a virtual guise and compete with others in the electronic realm. At the same time, those avatars could become contestants in broadcast shows for the entertainment of viewers.

If you think Sanjaya was an outré character, imagine how far out of orbit created personas could fly? Once loosened from their fleshy prisons and the barrier of geography, the imagination of the world would be loosened on these stages.

Imagine Dancing with the Stars, in which a contestant in Bangladesh with a Nintendo Wii strapped to her leg and a USB-ported dance pad under her feet dances the rumba with Brad Pitt. Imagine an American Idol contestant, the spitting image of Elvis Presley, trying to match his timbre on Heartbreak Hotel. Imagine the catfights and carnage among a dozen avatars forced to stay on an island together, 24/7, until only one remains.

The merger of virtual reality and televised entertainment lacks only an interface, and EA is one company jumping into the breach. Success could bring profits that are more than virtual.

Every search you've ever launched through Google (NASDAQ:GOOG), every page you've ever visited as a result of said search -- that's the info that Google announced this week they have compiled and will offer back to you via Google Web History.

Though they guise it as a service designed for my convenience, I must admit the thought of their hanging onto such data sends chills up my spine. I suppose I've been a willing participant in the delusion that the size and complexity of the Internet grants my browsing habits a measure of anonymity. Now, however, I find that the service that has been feeding my addiction is also videotaping me at my worst, then offering me the opportunity to relive those moments at my convenience.

And it's not necessary. My browser, your browser, all have a history feature that stores locally a track of sites visited. We can let the list compile or delete it at our pleasure.

Of course, that's not the 500-lb. gorilla in this story. The gorilla is the possibility that my web travels will be available to anyone able to convince a judge to write an order, or to any hacker talented enough to pose as me. Identity theft? Somehow, I feel more violated by this than by someone pinching my credit card.

The Googlebund's greatest enemy at the moment is the human fear of consolidated power, and the possibility that one day we will refuse to feed the monster with our mouse clicks. Until now, I've been willing to concede little pieces of my freedom in return for the riches returned. But now that I know that they are in fact the kid hiding behind the garage recording my every movement, I may have to find an alternative.