Search Peeping: Does Google value protecting American's privacy?

Robert Scoble of Naked Coversations fame (great book Robert! Thank you.) posted a very interesting 7 minute video of Google's Lobby on his widely read Scobleizer Blog:

• "Here’s a silent video (I was shooting some “B Rollâ€? at Google the other day and thought it would make a fascinating video for you to watch). What is it? It’s the lobby of building 41 over at Google’s headquarters. It’s a little more than seven minutes long. What does it show? The cool screens where you can sit and watch random searches that are being done on Google right then."

After initial fascination like Scoble with reading real random searches as they were occurring, upon reflection I found it very troubling. Why its interesting is exactly why its troubling. It's interesting because none of us in the public domain ever get to see what anyone else is searching for at a specific point in time, because that is potentially very personal/private search information -- which I thought until now -- was supposed to be guarded as private information by Google. 

What's troubling is that if Google handles American's private information so cavalierly as to use it for perfomance art in public, what other private information are treating cavalierly that we don't know about? 

Is anyone else troubled that Google doesn't see anything wrong with "search peeping" or a public "search peep show?" What do privacy advocates think?

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