> What's damaging in this case is that Google created the signalling mechanism, gave it to users, and then intentionally chose to circumvent it.

Absolutely not.

Incognito mode, as in every browser, means you're history isn't recorded on your machine. And as GP said, Chrome even explicitly explains your ISP or websites may still track you.

And Chrome isn't doing anything to circumvent it.

Intent and reasonableness here is perfectly fine on Google's part. Incognito mode successfully prevents storing history on your machine. Analytics successfully track you. And nobody's being misled. Incognito mode has never been advertised or marketed as anti-tracking, because it's not supposed to be. It's just a convenience to clear cookies and history, nothing more.