IMO both of you have good points.
I would expect 23andMe to be doing some shady Facebook-esqe bullshit because of the profit motive and that is why I have never used them even though I am curious. I expect the state to be doing some shady Facebook-esqe bullshit because of "terrists" but I didn't have the option to not.
So I can both be "at least as concerned about the State of California" and also be 100% against sending a swab to 23andMe. I trust neither more but with one of them I have control over their collection of my DNA.