Earlier quoted context omitted.
It's a valid objection. GA at this point is on most websites you visit. The data is forwarded to Google where it's processed and stored forever. GA is one of the biggest threats to privacy on the web, and any company claiming to care about your privacy should not be using it.
I find it very, very hard to get outraged over analytics code on a web browser site. And as previously mentioned every time someone brings up this idiotic factoid, Mozilla's use of GA isn't exactly standard.
Google wants to know what web pages you visit, when, and how often, and a GA beacon that phones home that information placed on every web page is the easiest way for them to do it.
EDIT: there are either a lot of angry GA users in this thread or Google apologists. Either was, I do believe Google is now or will soon use GA for clickstream tracking. I also believe this is why they offer to host frequently requested assets like JQuery.