Nope, this was still the rule for Berkeley as of 2012. Since then though, they've been replacing Berkeley's prior system with a Google apps. I'm not sure if that changed anything.
I should also note that there have been a couple of cases since 2008 where courts ruled that use of an employer's e-mail system broke privilege with respect to that employer. See, e.g., Holmes v. Petrovich, 191 Cal. App. 4th 1047 (Jan. 2011). It might be a stretch, but I could see someone trying to argue that Gmail use voided A/C privilege with respect to a lawsuit against Google.
There are also a lot of court cases the other way, and those cases were more about employment agreements, handbooks, and TOU, than they were about by general privilege breaking by using a cloud email provider.
I should also note that there have been a couple of cases since 2008 where courts ruled that use of an employer's e-mail system broke privilege with respect to that employer. See, e.g., Holmes v. Petrovich, 191 Cal. App. 4th 1047 (Jan. 2011). It might be a stretch, but I could see someone trying to argue that Gmail use voided A/C privilege with respect to a lawsuit against Google.