Yes, they have just added sub-folder selection. Google Drive is still limited to syncing just one main folder and its sub folders from your PC or Mac. If you want to sync any folders, network drives or USB drives to Google then you’ll still need a tool like Syncdocs.

Files stored on the cloud are files stored on someone else’s computer. All it takes is a hack of your Google Account and all your drive files are visible. You’re always better off encrypting them with a tool like TrueCrypt http://truecrypt.com or SyncDocs http://syncdocs.com before the files ever leave your computer.