I wonder how many people who say this are the same people who'd pay for every one of the free services offered by these companies. I for one would rather have ads.
As an extreme example, how would you like it if an unscrupulous porn site featured your face on an advertisement? Even worse, suppose a prospective client or employer saw your face on an advertisement for some banned substance. In most cases, its irreparable damage.
But this is not what Google does, or am I missing something? AFAIK, what they actually do is more akin to shopping basket analysis supermarket chains do. So my question remains: How exactly does it harm you? Has Google ever linked you in a publicly identifiable way to some product? Moreover, if you feel bothered by the way they handle things, why don't you just stop using them?
"Moreover, if you feel bothered by the way they handle things, why don't you just stop using them?" <-- as explained in my example, I can't stop prospective clients or employers using google. I certainly can stop myself, but the damage happens when others see it