To be fair, there is quite a bit of data which Google could avoid collecting, and they do prod people down pathways which result in them receiving more data.
There are even a few companies which compete with Google on a few things and their whole marketing pitch is that they don't invade your privacy.
So, if there's a security / privacy incident, it kind of is on their heads. I think the question though is how much data are you really comfortable with Google having a hold of.