Illicit tracking by the government is a definite problem. I think that even in these times, you have to have your tinfoil hat on a little too tight to think that advertising cookies are the bogeyman here.
However, today Google has all the information about users that the US government can use as a good complement to an already vast spying organization.
Google has information about your emails, friends, search queries, page you visit, documents and files you store, clips you watch, medical records etc.
Are you telling me that the US government is not interested in this information and the reports of NSA plugging its system into private businesses was just a hoax?
Is the secret FISA hearings just tin foil bait?
Are you suggesting that this is not the case? that seems to me to be a remarkable conclusion to draw?
Wasn't it Google that optimized the NSA datacenters as early as 2005? I think its safe to assume that many of Google analytics' bigger customers are not corporate. Not to mention, of course, Google Earth which was developed with CIA money... but also needed some optimization (read, better developers). I am pretty sure that Google Earth was not a loss leader for the company ;)
I think that, amazingly in these times, you're sucking down your naivety cool aid a little too plaicidly to think that advertising cookies are not the optimal tracking method for both corp and govt.
And I trust the NSA barely at all.
Somewhere in there is a bit of a difference.
The economic model for this is called corporatism, which incidentally is the same as for fascism.
And if you think that private companies and/or web sites didn't play a huge role in any of the above cases ... well, you and I inhabit different universes.
As others have pointed out: private companies can collect and/or process information that governments uses. They're also susceptible to hacking by government or rogue agents: Google, Yahoo, Microsoft, and Apple have all been targeted by Chinese government-related hackers (mostly looking for Faulun Gong and Tibetian activists).
Other companies such as Cisco simply hand over the tools authoritarian states request.
before sombody mentions that its not reading your email if an automatic script does it, that sounds suspiciously like the argument that the NSA is not intercepting communications until they are viewed.