Also, running analysis on this kind of data must be pure awesomeness, from scientist's point of view ;).
http://lifehacker.com/5697167/if-youre-not-paying-for-it-you...
"Some of us are completely aware of what Google does"
And most are not. And that was my point. At no point did I state that 100% of people are unaware of what Google does, so I don't know why you felt the need to add that tidbit.
"Seeing some personalized ads in exchange for access to all the world's information seems like a fair trade-off to me."
Not really relevant to anything I said. (EDIT:) However, if "seeing some personalized ads," is the only cost you can imagine, then I'm afraid that Google is benefiting from your ignorance too. Here are two more costs:
1.) If your account is compromised, your search history is compromised and could be used against you
2.) If you get in legal trouble, your search history could be used against you
"If one would give me six lines written by the hand of the most honest man, I would find something in them to have him hanged"