In my opinion, there WILL be a backlash.
All the pushes against Google in Europe (where they get the additional black mark for just being a large "American" company) points to it as well.
Plus, it is a very slippery slope. Once the cat is out of the bag so to speak, all the privacy people and technical people will start finding more and more examples of both what IS being done, and what CAN be done with the data.
The worldly interpretation of Google's motto of "Don't be evil", will instead be more like "Don't be evil; But anything providing more profit for Google by definition cannot be evil".
While they will be very hard to control, I do believe that they are headed for trouble. Letting the Russian take the CEO-ship may not have been such a good idea.