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This is typical Internet drama. We have seen it a million times. I give the guy the benefit of doubt since this wouldn't be the first occasion some journalist taken a sentence out of context.
I'd like Eric Schmidt to publicly release his search history, both his work-related and private searches.
The article links to a story about Google blocking CNET reporters for a year after they used Google search to find details about Schmidt: http://money.cnn.com/2005/08/05/technology/google_cnet/
Really, all this "privacy" nonsense is for the little people, not important folk like Eric Schmidt, anyway.
I think that most non-tech people would be very surprised if they realized how much personal data our corporate overlords have collected.
From Wikipedia Article about Google Chrome: Chrome sends details about its usage to Google through both optional and non-optional user tracking mechanisms
If you wanted to end Google, all you would have to do is offer a reward for a whistleblower to videotape a privacy violation at Mountain View. Imagine putting that on Youtube. (EDIT: yes, I know they own Youtube. Of course they'll take it down. But it would be reposted on Vimeo and the like, and the publicity for the takedown would cause the Streisand effect).
Imagine that getting taken down from Youtube in record time.
My corollary: if you have something to hide, and doing it is a good or neutral thing, then you have identified a bug in society. You probably ought to fix that.
Absolute power corrupts absolutely
Universal sousveillance is the future, but since you'll be less and less able to tell whether you're in the future in this sense, acting as though you are might be prudent. :)