Yes, Google doesn't want to cross the "creepy line".
But at the same time...
"We don't need you to type at all. We know where you are. We know where you've been. We can more or less now what you're thinking about."
But at the same time...
"We don't need you to type at all. We know where you are. We know where you've been. We can more or less now what you're thinking about."
Fortunately for Google Eric Schmidt seems to be the only one publicly stating this delusion so there is hope it is mainly in his head, but I'm not sure.
Instant is just an extention of what they have tried in Chrome or with Suggest. If Joe Average Consumer knew how these things worked (e.g., that every keystroke in Chrome's unibar ends up going to Google, often associated with his Google account, so that they know he frequents fatchicksinpartyhats.com), I think most people would be fairly creeped out.
Technology can be ‘creepy’ (I don't like that word, it can mean too many things) so by giving control to the user innovation is maintained and no lines get crossed.
In case you didn't notice, he then proceeded to tell you that they know everything about you already.
Quite often the user granting permission has no idea what the implications will be.