I still don't think that lets Google off the hook, though; it just makes it more important that their personalization strategy be backed by very flexible, granular, and technically meaningful privacy controls. It means that Google should be setting an even higher bar in terms of educating their users about precisely what data gets collected and exactly how it gets used- and they should empower their users to control how that personal data impacts their experience using Google's products.
The number of their users who actually care about this stuff right now is basically a rounding error when compared to their total user numbers, but that doesn't mean it isn't important. And hopefully, as more and more of our life is conducted online, the number of people who care about this will increase.