It's very unlikely that Verizon's business will suffer, given their membership in the internet
oligopoly [1]. Also, in regards to your other point -- what's stopping Verizon from just changing
their business model? The fact Google offers free services is irrelevant.
Verizon could do this and "offer" faster internet, claiming this tracking is what enables everyone
to have faster internet for "free." There's a cost to everything -- including giving away your
information. If there was no cost, then Google and company wouldn't want it. The fact that they're
able to make money from it implies there's value, and if you're giving away value, it must be
costing you. It's just not dollars.
I still think you shouldn't let anyone spy on you, free or not. What Verizon is doing is just the
same as them raising the price of their service, except worse, because once they have your data the
returns on it will only compound.
[1] http://www.verizon.com/about/news/dispelling-the-myth-of-a-t...