Even assuming that the take-away was that Google's spying on me, I don't think I'd consider it a bad thing. If they are, indeed, doing this, it's unlikely that the information could be used for evil. It's not as if they'd log the POST data going back and forth when I'm banking online.
If you've spent a fair amount of time on YouTube since Google acquired it, you'll probably have noticed that the "related videos" list tends to have videos that you want to watch. They achieve this from extensive data mining and clustering. If they're data mining to increase the productivity of my search results, I say go for it. It's no secret that Google already archives every search result you ever perform against a cookie; and if you're logged in to a google account, you can even see that list, and view the data in pretty spreadsheets and graphs.
Never the less, it would be a scary prospect if they were doing that without informing users that it's happening, or giving you the opportunity not to opt-in.