FWIW, I agree with this sentiment.
Google did not need to give this stance at I/O. It appears that they're being as transparent as they can about the fact that our data is their business model.
I get it: our online privacy is important. It is becoming increasingly more difficult to remain truly anonymous on the Internet, and this is mostly thanks to Google. However, the converse could be Google using our data for malicious purposes. Has there been any evidence of that? I have not seen any.
I believe we live in an age of online convenience, and not just for the average user. Google generally makes security-conscious products, especially with Chrome. Heuristics has proven to become very effective in combating online malicious behavior. By establishing our identities with Google, Google can generally say "we are who we say we are" with a degree of confidence, without us having to do much of anything. This is generally bad from a privacy stand-point, but can be good from a security stand-point.
Overall, I think Google has done good things for the Internet. But good things sometimes come at a cost, and sometimes third party companies want that cost paid in a way we do not agree with. I think Google is doing all they can to make that point clear.