Earlier quoted context omitted.
Encrypt the data on the device. Backup encrypted version in the cloud. Download encrypted backup to new device. Unencrypt on new device. Merge versions on the device. No need for plaintext on Google servers. No way for monetization by Google. Or to put my alternative another way, how much is a data set mapping WiFi passwords to networks for the city of Bejing worth to a foreign intelligence agency or other state-leve…
You're providing innuendo and "exercises for the reader", not an argument. That's pretty weak. What would such a data set of Redmond be worth to Google? Nothing. Because accessing those networks for industrial espionage (if I read your innuendo right) would be illegal and immoral. It would drag Google's name in the mud, lose them customers, credibility, and most likely a decent chunk of talented employees. The liabil…
Google made $10 billion last year.
In a cyber-war, how much would the Kremlin pay to disrupt every Chinese WiFi network to which an Android device has a current password?
In a shooting war, how much would the US pay? Keep in mind that the modern battlefield increasingly uses ordinary data devices particularly in counter-insurgency operations.
Jim McDonnell, Donald Douglas, Jack Northrup and Leroy Grumman did not start out as defense contractors. They diversified their corporations when voluntarily seizing the opportunity was a good alternative to the threat of compulsion during the Second World War.
This may in fact be the one time that the rules are different. But there's very little historical precedent upon which to premise such a belief. GM produces military vehicles. Westinghouse and GE produce powerplants for ballistic missile submarines.
[edit] The question of how plaintext leads directly to Google profits remains unaddressed. It is not as if Android users can recover their passwords by calling up Google customer service. On the other hand, storing passwords in plain text is usually a decision made to facilitate requests from a company's customers. Asking who constitutes Google's customers is a reasonable place to start when inferring motives.[/edit]