So, no, we do not store a constant audio stream from everything in your house for all of eternity. We don't store every website you visit in chrome for all of eternity. We don't analyze your face as you browse Hacker News from Chrome in your cellphone using your front facing camera, and store how the different parts of every page influence your emotions.
I'm sure SOME company is doing all of these things. But Google is not.
You need to jump through a million hoops to get permission to store anything at all! And unless there's a very clear reason why our service won't function without the data we're collecting (note this is completely different than the data potentially being valuable for something in the future, or possibly being able to add revenue) there's basically a ~0% it gets stored for longer than 30 days.
Maybe some of the older products like Doubleclick and Google Web Search are grandfathered in and storing lots of questionable data. I don't know. But I doubt it. Anything built in the last few years -- again I don't really know -- but I'm pretty sure shouldn't be considered a monster data vacuum.