Well, I'm an ex employee. Actually nothing has changed inside the company. "Tracking" as you put it isn't perceived as evil, it never has been, and for good reasons. The only thing that's changed is people's perception of the company and - very recent post 2016 political issues aside - that was mostly driven by a sustained campaign by an angry media industry that wanted money (see: link taxes).
Firstly, if tracking usage statistics or activity was actually evil then everyone would hate it, desperately try to stop it and have tons of stories about the horrors of it.
In fact what Google sees is:
1. Web apps are extremely popular although they all keep server side logs that reveal every button click, every message you type, every email you send, every search you do. Users routinely migrate from thick client apps that give great privacy to web apps that give none whatsoever without batting an eye.
Hacker News readers in particular should understand this. It's overrun with Silicon Valley types who build their entire livelihoods around "let me run this program for you as a service". There's nothing special about Google in this regard. The entire software industry has moved away from privacy in the last 20 years because ...
2. Users rarely if ever use privacy features when they're provided, even when they're heavily promoted. In fact, despite all the noise, hardly anyone cares. For the vast majority convenience wins over privacy every time. But not just convenience, also ...
3. Security trumps privacy. People say they like privacy, but they hate getting hacked and tend to blame the service provider if it happens. They have very little patience for explanations of the form "yes this attacker was obviously not you and yes we had enough data to know that, but we didn't use any of it ... for your own good!"
4. Users can't and won't give accurate feedback about what they value or what their actual experience of using an app is like. This means A/B testing is critical to avoid making bad business decisions. The heavy reliance on experiments and data driven decision making is one reason tech firms tend to steamroller their legacy competitors.
Google hasn't become evil over time. It's been doing A/B tests, keeping server logs and writing unused privacy features since the company first began. All that's changed is it got big and rich, so people - rightly - started to think about its power more. But the hypocrisy is strong. The world is full of companies collecting and using data for the benefit of their customers. It's really only Google and Facebook that get the vitriol.