It'll be interesting to see how this plays out. Not only does Google maintain extensive information on our individual Internet activities, but it also has a tendency to be cavalier with intellectual property in general. The problem for the IT Left is that Google has long been their darling, acting as a foil against the company they really consider evil, Microsoft.
Will they accept privacy concerns with Google that they would accept from no other company? It remains to be seen which will take precedence, their hatred of Microsoft or their inherent dislike of business in general. I have no illusions, of course, that they'll be at all concerned about intellectual property.
Note that I'm not convinced that there are general "privacy" concerns in what Google is doing. Once my activities leave my computer, I'm not sure that they're any longer under my control. What happens on my computer should remain private, but that has as much to do with how I use my computer and what software I run.