Google: the Evil Empire?

According to someone I met, a leading researcher on the internet, Google are terrible violators of privacy. If you have a gmail account, here's the information they store about you:

1) your IP address
2) your raw search strings
3) your email address (in gmail)
4) list of email addresses you communicate with
5) the ads that you might click on a result of searches
6) google page ad syndication reports back to google other ads you click on even if you don't use google

Does it make you feel a little queasy that a single company holds this much info about you?

Google does not have a stated policy that they will not cross link databases. So there's nothing to stop them constructing a super-powerful per-user information database. What do you think the odds are that they won't sell this information, when it becomes expedient? Or turn it over to federal authorities, or repressive regimes, on demand?