I should mention that many companies, especially hosting (e.g. Verio, Blacksun, etc...) all give this free as a service, because, according to the EULA "You may provide access to the reporting functions to third parties for a fee or free." Actually, I am looking for other companies that offer this as a service by remote FTP log process or something like it (Blacksun claims to, but havent talked to them yet).
A few reasons they still offer it:
* Process historical logs
* Robot & spider reports
* Status & Error code reports (404s, etc.)
* Individual Visitor History Drilldown
Oh, and because Google wont own, or even use your own data against you. Last I heard, they used the data to feed conversion/keyword data into their Doubleclick/affiliate ad network, although I could be wrong on this.