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The official google policy that I read is that it wants the area "around its headquarters" to have free wi-fi. Which makes a lot of sense as that helps google have business meetings in local cafes etc.
Now is there ANY concrete evidence that google is going to be giving the entire world free internet access via wi-fi?
One thing that makes me VERY sceptical, is that wi-fi has a limited range, and everyone KNOWS that next year Wimax is going to be introduced which has a significantly greater range. So it would be pointless for google to build lots of wi-fi points when in only a year, they could use a tiny fraction of the much higher powered wimax transmitters.
Now if google is going to offer free wireless internet in exchange for putting google ads on all webpages, then good luck to them. I would value such a service. However I see no evidence what-so-ever of this happening, except for some idle speculation.
Prove me wrong: Show me confirmed evidence that google is going to do this.
It's an encrypted tunnel to Google's servers.
If you don't trust your local access provider, then it allows you to hide your data from them. I'm not sure about the current implementation details, but by principle the same concept would work just as well with any other type of access besides WiFi.