Whether or not they are the good guys, laws that attempt to contravene physics are a bad idea. If the packets had been encrypted, it wouldn't have mattered that Google captured them--without the key, they're just noise. You could pass a law saying that capturing packets broadcast without encryption is illegal, or you could pass a law saying that if you want your packets to be private, you should encrypt them, and if you don't encrypt them, you have no expectation of privacy. Which of these two laws do you honestly think makes the most sense?
Let me rewrite that:
You could pass a law saying that stealing bikes with or without locks is illegal, or you could pass a law saying that if you want to keep your bike, you should lock it, and if you don't lock it, you have no expectation of keeping your bike. Which of these two laws do you honestly think makes the most sense?
But making it illegal is a really expensive way to solve the problem, and it doesn't solve the fundamental problem, which is that people are sending their personal information over the network in the clear.
You're wrong ;) The fundamental problem is not unencrypted networks. The fundamental problem is that Google can (legally in many places) harvest and use this information for whatever purpose they like - and some people are blaming the people operating the wireless networks. I find that absurd.
Question for extra credit:
If we imagined a company, with access to massive computation power, captured encrypted traffic and later brute-forced deciphered everything. Will your reaction be: "Well, it's their own fault. They should have used stronger encryption"?