You are absolutely right.
What confused me was this paragraph from the Google Suggest page:
"
Google Suggest returns search queries based on other users' search activities. These searches are algorithmically determined based on a number of purely objective factors (including popularity of search terms) without human intervention. All of the queries shown in Suggest have been typed previously by other Google users.
"
I put a correction on the page, please let me know if you wouldn't want your name to appear there.
However, I disagree that nothing can be learned from the data, because all these are real queries that have been issued multiple times. At the same time, I admit that the ordering is totally different from what I understood it to be.
It seems that when you use Google Suggest, the 10 suggestions are ordered differently than this number (the # of results) would indicate, perhaps that is the true popularity of a query, however, those partial orderings are insufficient to reconstruct the full ranked list of all queries.
Thanks again for pointing out the (major) error in the article.