That's curious, because I was just at a talk by Alma Whitten who said that Google didn't use any of the GA data for profiling or ad-related stuff, and simply provided it as a service. Did I misunderstand her, or, possibly, you?
Link directly to their help center: http://www.google.com/support/analytics/bin/answer.py?hl=en&...
I told her that I blocked google analytics because I didn't want it to find out things about me for advertising etc. She responded saying that Google doesn't do that, but now that I think about it she was probably saying that Google doesn't profile me specifically, nothing about anonymised data... yeah, now I'm not so sure. :)