I haven't read this carefully enough to decide exactly how bad it is, but one thing seems clear to me: From what I see many techies are now aware and upset, and hardly anyone seems to want to defend Google anymore. I consider it more likely than not that Google will take some real beatings in the years to come. Kind of like Microsoft was fined by the US and EU, forced to advertise for competing browsers and ridiculed…
When I moved into IT almost 10-15 years ago, Google was one of the companies that I adored (in a kind of naive way, but nevertheless..). Working at that company has always been a dream of mine. They had the reputation for hiring the best of the best engineers, with great benefits and work culture. Meanwhile I'd hate to apply for them. Everything they do in terms of tracking, etc. has become so vile and almost evil th…
The thing which changed is that Google operates on a much, much larger scale than anything imaginable back in the late 90s when they first started. In 1999, nobody had any inkling about the cloud and SaaS revolution that was about to come. Nobody knew that everything was about to move into web apps and cloud services, which permit and require(?) tracking in ways, and on a scale, no one had thought possible. (Require with a question mark because - ad tracking aside - what little I know of frontend development includes that they need to be able to see certain information, like your browser type, in order to provide effective services.)
The thing which didn't change is the mindset of the engineers building the services. On average, Googlers tend to be much less concerned with personal privacy than an equally educated consumer, and much more interested in the features and services they can build for themselves and others which happen to require huge amounts of personal information to function. In other words, a typical Googler is more likely to think, "Oooh, having a personal digital assistant is great! If I give Google access to my email inbox, it can suggest tasks, automatically add calendar invites, and do other cool things."
The problems we're seeing now come when the engineers working on advertising products have that mindset and access to Google-scale information. They don't consider it a problem or a violation because they don't mind targeted ads, they don't mind giving up their data in exchange for services, and they don't (want to) understand why people who aren't them might object.
It's a lot more complicated than that because Google, while the largest and arguably most effective, is not the only player in this game. There are a lot of other corporate and social influences at play. This is just to answer the question about what changed at Google.