There is no such thing as online privacy, never was. Google sells ads, it's what they've always done and it was never a secret. To sell ads you have to be able to target them, to target them you have to know to whom, to know that you have to "read" every keystroke of everything that goes through your (Google's) server. The first email sent on Gmail was 'scanned' and the first search on Google was 'scanned' for keywords in order to better target ads. It's not new, it shouldn't be a shock. Sure, they've honed the process and maybe include some stuff they shouldn't but they are no more sneaky than any other company, online or not. If I can say I like anything about all of this it is that at least Google is semi-upfront about it. But really, please don't think anything is yours and only yours and private, that went out the window (lol) in the 50's, today's technology just makes it more streamlined and faster.
Google is evil. Slightly less evil than most though.