Ok, why is this stupid? Because the entire world has grown up to understand the idea that there is a difference between doing something and doing something a lot.
There is a difference between peeking in a magazine and reading it at the store.
There is a difference between listening to music and listening to music at 100dbls in a party.
There is a difference between walking around naked in your house and doing so in your glass house.
There is a difference between selling your old computer in your garage and turning your garage into a used hardware store.
There is a difference between selling your 2 tickets to a concert you won't attend and selling your 100 tickets to the same concert.
In fact the whole RIAA has successfully sold (or rather bought) the idea that it is not the same to share a movie with your friend than sharing it with your other hundred thousand friends.
There is a difference between buying a t-shirt and buying 10,000 t-shirts. There is a difference between running 1km and running 100km. That doesn't make buying 10,000 t-shirts or running 100km illegal. I get that there are differences. But in general, if doing something once is legal, doing it lots is also legal. You need specific laws (noise control, scalping, and so on) to make lots of something illegal when a little bit is okay.
And yet you are unable to understand that there is a difference between broadcasting SSID and MAC addresses to let your equipment interoperate inside your home and volunteering them to a global geolocating database of the entire Internet!
A number of companies have done this before Google, and they're not in trouble. There's an iPhone app.
And yet you are unable to understand that there is a difference to let your neighbors see your face and having an omnipresent and omniscient entity mapping and logging every detail about you!
Hardly every detail about me. Actually, pretty much nothing about me (in this instance). I opted out by turning encryption on. People should be suing the companies that sold them WAPs with encryption off by default and didn't explain to them that they were broadcasting their traffic to the public by using it. Even if my encryption was off, one or two frames of network traffic is far from "every detail about [me]". I think you're panic mongering.
Google is abusing both people's thrust in their neighborhood --who could have known that Google is watching you everywhere?-- and their ignorance. Is it ok to take something from someone just because they didn't knew they had it?
Google basically played "easier to ask forgiveness than ask permission". Are you really so incapable to realize the difference between an individual and a corporation?
Google is not watching you everywhere. Panic monger. Google is driving around taking photos (this shouldn't really surprise anyone) and collecting information about public networks. Not much information, by the way - a little more than they intended to, but when they discovered that they stopped it, and disclosed. I just don't get the big deal. They didn't collect anything that any member of the public couldn't. When they realised they had more than they'd planned to collect, they disclosed and started deleting.