"[Google] is making it harder for you to maintain control of your personal information. Why are they so interested in doing this that they would risk this kind of backlash? One logical reason: Every data point they collect and connect to you increases how valuable you are to an advertiser."
You can read the full ad by clicking on the image on the left. We've already suggested that some of Microsoft's products might make suitable alternatives if you're offended by Google's new policy. If you're not convinced by Google's official response to your concerns, maybe it's time to think about migrating?
Update: Google has responded to Microsoft on their Public Policy blog saying "a number of myths are being spread about Google's approach to privacy. We just wanted to give you the facts." They go on to say: "We've always believed the facts should inform our marketing-and that it's best to focus on our users rather than negative attacks on other companies. Onwards!"