Your reaction is a valid one, and I have my limits too, but I think we're beyond the point of merely acknowledging that it's creepy. Please go further: Where is the line? Why? And what are you willing to do about it?
It seems like the bigger issue is when malicious parties usurp this data and use it for their own ends. We can look to science-fiction for predictions. Scroogled comes to mind, as well as a (possibly falsely remembered) recent campaign IRL to root out dissidents via internet searches.
And one more scenario: false flag. Since search records are considered evidence, planting this evidence could be all the sway that a jury needs, or even just for defamation purposes.
I think the fear is not of Google, but of making our lives tied to a record-keeper that could potentially have no accountability.