I was just having a discussion yesterday with a friend who works at Google about what data they store when you query their search engine. Every single keystroke, including backspaces, is stored. They don't just know what you ask. They know how well you can spell and know how well you type, not just in general but down to specific letter sequences. With this data, they can tell if you are regularly more impaired (fine motor control) at some times than at others, or if you're growing more impaired over time and match that against the content of your queries, etc.
"Phones that don't limit their boundaries to a touchscreen", meaning, we're not satisfied limiting our knowledge of you to just what we can extract from what you enter and how you enter it and when on a touchscreen. We want to know every step you take, when you sit, when you stand, how and where you walk.... SO much more data about you and your world that we can mine for treasure!
I'm not saying that Google is evil. My friends at Google certainly aren't. It's just that they are like kids in a candy store with unprecedented access to data and so many great, new algorithms for extracting information from it that they are just loving it, the way geeks would. But we're really going down a rabbit hole here.