"But this is not what Google does, or am I missing something" <-- Google in specific doesnt do anything like that now, but Google and the other sites can change their terms of service from under us (I dont think people knew five years ago that Facebook ads would use our likeness or would change their terms to allow them to do so by default). For all the talk of Google "does no evil", they are still a company and, push come to shove, could change their terms.
"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