Chrome steals your information and sends it to Google. Everything you type in the google search bar gets sent to them and kept. After a few months of using Chrome, you'll start noticing random adds that aren't so random any more and more to your suiting.
Anyone who uses Chrome and searches football stuff try this. Search "new games of 2011", I bet you'll see football related games, depends on how many times you've searched for football stuff though.
How bad thing is it if they use your data just to focus more suitable ads for you? Google thinks it smart. Which ad you rather press, the one that interests and relates to you or the one that sells something complete shit for you?
You're not looking at the big picture. It's a matter of privacy, they have your information without your consent. What if you wanted to make a drug or do something illegal? Do you still want google to have your information?
I got your point earlier, just wanted to tell you that those ads are the reason Google collects data. The more you click on ads, the more Google makes money... Only thing that they store is your webpage visit info and Google searches.
Why do you think it's a problem? Google is not a law reinforcement product. They don't have people analyzing the data. Computer's just scroll the data through and try to put the ads genres to match the genres of your most common visits.
Over 600 million people have Facebook. They have much more of our private data, for some even credit/bank account numbers. You give permissions to Game companies like Zynga to get all your information from Facebook in order to play their games. All game providers have been giving out all the private info about users to advertisement companies which I guess is illegal. You are not worried about Facebook giving out all your info, but if it's Google, then hell breaks loose?