Not necessarily. If Google is looking at stuff I share on google+ to find out more about me, I'm okay with it especially if they're targeting ads better. I know there will always be ads on websites, might as well suffer ads that I am more likely to be interested in.

The problem for Google+ is that people already have Facebook for their non-geeky friends so it has become primary for tech people who care more about these things.

Google+'s demographic is now like what Gmail's was long ago- Mostly geeky guys who got beta invites and their geeky friends who got invites passed on. It takes a while for things like email and social sites to propagate to a majority of the internet population (because most people are heavily invested in the predecessor)