My personal opinions/observations, you may or may not agree (and you have every right to
For me it boils down to one question......Why is Google collecting all of this information? To sell their ads for higher prices or to sell it to marketing companies.
Do these companies care that Mike Smith is one of the millions of people behind all of this information? I don't think so. I dont think Google is even legally allowed to tell them. They're interested in the aggregate trends. They're interested in the fact that someone who visits tech websites is probably more interested in buying tech products than the user who browses YouTube videos the whole time they're online. Sure, Google knows Mike Smith is a techy, but is only interested enough to deliver that ad.
Google wants your location to be able to present you an ad for your favorite store (based on search results or check ins) when you are near it. They get paid more for these targeted ads. Is this a bad thing? Up to the person really. Personally, I don't mind. I understand the concerns about government monitoring your location, but frankly if they have a warrant and want to monitor my trip to work and home each day they're wasting their time.
They aren't selling your contacts. Honestly, who wants to buy my contact list? What could a company gain? The CIA? FBI? Surely there's use there for that, and they have access to it when they present Google or my carrier with a warrant. Other than that, it sits on googles servers waiting for me in case I lose my phone or have it stolen. These are convenience services. These exist because the competitors have them.
In the end, if you skip across the pond both apple and Microsoft are going to be trying to sell this data as well. Its a consequence of the digital age we live in.
Been to the doctor ever? Those medical records are available for any number of institutions for research purposes. Once again, the aggregate is all any company/organization cares about. Personally identifying information is kept confidential.