"but if you really need that kind of privacy, the reality is that search engines including Google do retain this information for some time, and it’s important, for example, that we are all subject in the United States to the Patriot Act. It is possible that that information could be made available to the authorities."
Which is basically the most direct way of saying "the NSA has a gun to my head" that that is available to him. Honestly, I'm not all that worried about Google in and of itself. They seem to be fairly transparent about what they do and why they collect that information in the first place, and they are staffed by a lot people with similar views to the prevailing opinion on Slashdot (though these views are necessarily going to be much more moderate than a lot of the views expressed here, or they wouldn't be working for Google in the first place).
No, the fact that Google is a treasure trove of personal information for the United States' various three-letter agencies is far more worrying to me than any ill will on the part of Google, particularly given the US' eagerness to conduct national and corporate espionage to secure themselves any economic advantage for the United States. Or to scour the world for all the entities that they might consider to be a threat, real or imagined. Naturally I'm just another unimportant geek and not a visionary engineer or a trade negotiator, so I shouldn't have anything to fear personally from this system (yet, anyway), but nonetheless I still find this unbridled use of dirty tactics to be morally repugnant. /That/ is the real message we should be hearing about Google, but I doubt that it lines up with the interests of whoever is controlling this particular drawerful of sock puppets.