Google's entire business is collecting data. What would make you think they're not collecting this info?
Here's a thought experiment: my Android phone has a camera in it. Do you also believe that Google is collecting every picture I take without my permission?
They could have made some arbitrary statement like "by using the camera app you give us access to all of the pictures you ever take, so that we can back them up for you."
On the other hand, if you don't feel comfortable with google being the clearinghouse for the information...super? Use something else (and spur competition!). The OP's statement seems as monumental as which brand of credit card company he uses (and somewhat willfully blind in light of the information they can and do collect...much more than appears on our credit card statements).