Basically, in the old days, people were able to fuck up their circumstances permanently because they lived in a small village where everyone ended up knowing everything.
Because that's obviously not conducive to a well-functioning society, everyone agreed to forgive and forget (debts at that time) every so many years.
This might be a reasonable way to handle our current data congestion problems. What if companies agreed to flush their user data every ? years?
http://en.wikipedia.org/wiki/Jubilee_(biblical)
edit: this isn't an explicit plan, just something to chew on. Also it doesn't address Google's issue, so it's kind of a distraction to the thread i admit.