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?”
Dustin Curtis hits the nail on the head so hard the nail’s on its way to Fiji.