Just because something isn't currently happening doesn't mean it will either. You're ignoring the fact that, if Google started abusing your information, people would stream away from them in droves and Google is more than aware of that.

Your monarchy analogy doesn't work either because, in a monarchy, you don't have the choice of leaving it other than leaving the country. With Google, and every other internet company (they all track you), you can leave on a whim.