Straight back at Eric Schmidt: "If you have to look at people's personal data to do something, maybe you shouldn't be doing it"
The problem is not that Google stores your data. The problem is that disclosing that data has social and legal consequences. Why shoot the messenger?
I am not worried about search / email / etc., though, I am worried about Analytics. I would like to be able to globally disable it. (NoScript solves this problem, but Analytics should be opt-in, not opt-out-by-blocking-Javascript.)