Great, so completely free internet, with exactly as many strings attached as everyone else gets, even though they don't get theirs from Google. I don't see why people are complaining. Getting tracked is an issue completely orthogonal to the internet access Google is trying to give people.
You're telling me that you don't think every HTTP request could be tracked by Google? Someone not on Loon wouldn't have that.
Could Google provide free internet without tracking people?
I'm sure it's possible. I don't think NSA-style tracking of all requests would be in Google's best interest, as it wouldn't do wonders for their image.
They don't care about their image. They care if they get locked up if they don't comply.
But they could do this with other ISPs as well. The problem is the NSA.
Who is "they"? Google is an enormous organization that goes to great lengths to protect its image. As an organization, I think Google is more concerned with its image than jail.