2. Google still has the capacity to do it, and sure, this was a mistake, but just like Android records people's location by default, in the future google could decide for an opt-out feature that records for the sake of training ML, analytics, or some feature.
This is not about tinfoil conspiracies, this is simply caring about privacy. The vast majority of people in the US weren't directly affected by the NSA's espionage, but still there was public outcry because people like privacy.
If this guy/girl thinks it's better to be safe than sorry, let her/him do so. No need to get so defensive of Google.
EDIT: A downvote? I'm curious as to why (especially given there was no reply).