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