If you did not serve up this information to request even though you had access to it, your company WOULD be breaking the law - this has already been settled in court. It is my conclusion that, as law abiding citizens and company, you would serve such requests. I also tangentially believe that if you felt the information would be useful to create a better product (and/or make more money) you would do this, as you are also compelled by law to maximize profit for shareholders and are incentivized do so to by financial compensation. I see no reason why your company would break the law to restrict the scope of this feature.
Furthermore, I can not tell where it says on the privacy policy that you do not or will not use this information for personalization of search or in response to compulsion of law. I saw a mention in the privacy policy of the compression proxy, but nothing relevant to Google not using the information or being able to provide it to a third party upon compulsion. Could you point me to that?
No need to speculate as appellate courts (and Google's own recent trials) have made the law quite clear.