That's why advertising the service around privacy is being criticized. It's a business. It will do business things. Saying it won't do those things is a distraction...like this conversation.

People who seriously care about privacy are not using Google to manage their information. They are not even your potential users, because they don't use Google.

Not storing data on your servers is a sound way to reduce your liability and attack surface. But that's an operational tradeoff that comes with a business dependency on Google's terms of service.

In B2B sales, not storing on your servers is a feature. But it's not really privacy. It's security.