The real issue that Apple is trying to address is not really privacy, but rather security. Though Google has all of my data, it is still private. Google does not sell access to my data; it sells access to my attention. Advertisers do not get my information from Google. So as long as I trust Google’s employees, the only two potential breaches of my privacy are from the government or from a hacker. If we accept this as a fact, the fundamental privacy question changes from, “Do you respect my privacy?” to “Is the user experience improvement worth the security risk to my private information?”
This is Google’s way in a nutshell. They collect everything about you and utilize it to improve their product and sell ads that target you as a demographic. Your information should never leave Google’s many millions of servers but it comes down to value. Are 50 free services worth giving up information on everything about yourself. The more you use it, the more they know.
I’d prefer to pay for a product with the assumption that I maintain my privacy and it’s not stored on the company’s servers.