1.) Why are you running your business out of your house.
2.) It's not "someone". It's "customers".
3.) Your product is Free!*
4.) Ads are annoying
5.) You cannot put the genie back in the bottle. Hackers and people with some dedication or desire to learn will always win, no exceptions.
6.) As most people have already mentioned, this seems to be a pretty glaring exception of the "Don't be evil" social contract that Google likes to throw about.