I believe, as I have believed for some time, that more active regulation of Google is warranted. Google has demonstrated that it cannot be trusted. In fairness, no one could be trusted or should be trusted with so much power.
Google can now combine what they learn about you from across their different products. Never slow to early-adopt when it comes to technology, the Obama campaign is endeavoring to do the same thing in the political space.
Google clearly defines how your personal data is being collected and used. Google uses this data for a number of reasons which are spelled out in the privacy statement. And only Google uses your information, unless you have given them opt-in consent.
Google, you want to be all things to all people. It won't work. Stop it and go back to doing what you once did well: totally unbiased search, excellent email, great photo storage, wonderful voice mail, and so many other useful services.