I don't know about you, but I'll take Google over Verizon, AT&T, Comcast, etc. any day of the week, regardless of their conflicts of interest. Google has a proven track record of doing things in my favor.
The current, publicly acknowledged level of intercourse between Google and the U.S. Federal Government is already worrisome. Perhaps your data has been a part of those exchanges, perhaps it hasn't. You and I don't know.
Now, imagine that Google begins relaying traffic unrelated to their services on behalf of internet users. It isn't hard to fathom that Google will come under the same pressures to give the U.S. government access to user traffic as have Verizon, AT&T, Comcast, and others.
That could just be the tip of the iceberg though. How long before the company caves in and decides to start including user internet traffic analysis into the search engine's signaling and ranking? Would it still be doing you a favor?
Edit: typo
Do I believe Google tells the whole truth? I'm not 100% convinced, but I can't know that. What I do know is that even if they tell 5% of the truth about government interaction with your data, this is several times more information than AT&T, Comcast, or Verizon tell you. Most of the time your data is simply handed over on a simple request. At least Google attempts/pretends to put up a fight.
Is it worrisome that I would accept 5% of the truth? Yes. But that goes to show how shady everyone else is. While immoral cooperation has no excuse, I would still point more blame to the government that makes the requests in the first place. Always assume your security is lost the minute the data touches a public pipe unless you take deliberate attempts to secure it.
I could be mistaken, but I think the PATRIOT act permits the US government to obtain your personal information without you being informed.
We've known for a fact that companies like AT&T have been working closely with the NSA for years. So it seems like Google is the better choice here.
Thus far.
The point still stands, as a principle – that sort of combination of function/power and interests has, historically, not been one that has resulted in good things for consumers, in the long run.
Don't forget all the horror stories of trying to sort out customer support issues. Given the range of issues that supplying internet to houses can have, this would discourage me a lot.
etc.
(Or is this sarcasm fail somewhere?)
When there is no competition then companies can afford to be lazy or ignore customer complaints. AdSense has no real competition, so Google just doesn't care if they have one less customer.
In the local access area, fiber from Google would increase competition, so would be a good thing.