It's interesting that Google does not display the IP address to Google Analytics customers citing privacy concerns, but it does of course capture that data for itself. Put another way, Google believes displaying the IP address to analytics customers would be a privacy concern, yet you could argue that Google capturing that data for itself is a greater privacy concern because, unlike the indiviudal analytics customers, Google can aggregate all the phenomenal amounts of data it captures to build a much more detailed picture of online behaviour across multiple sites.
Google are not collecting this information for nefarious purposes, but no company should be allowed to collect such phenomenal amounts of data about users' online behaviour without scrutiny. For example, consider how little comment is made on the privacy implications of using ChromeOS where your online behaviour is not only captured by Google, it isn't even anonymous.
No other company has its digital fingerprints all over the web like Google. But Google gets an easy pass on matters of privacy and online tracking. Why?