Quadrille - 6:39 pm on Mar 9, 2012 (gmt 0)
Frankly, who cares that they keep the data? Google has always been up front, and the challenges are 'politically correct' privacy issues, not real world issues.
Unlike many - particularly facebook, but M$ has been implicated in the past - Google uses aggregated data, and does not sell personal info to third parties.
It is no coincidence that FB's PR comany - Burston Marsteller - was caught briefing against Google's harmless data gathering, as FB sell your very soul to any advertisers who smiles at them.
No one who knows anything about aggregated data (and it matters for SEO) should wear a pointy tin-foil hat in these forums. It marks you out as 'credulous as hell'