I'm curious, do you think Google should operate in the United States? There are laws that could be used to force Google to say turn over your private data. Would not then the same argument apply?

On the other hand, the value of being able to use Google, despite its marginal risk, seems quite a good "exchange" for many people (that is, the usefulness of say search being weighed off against getting rounded up in say a war on child porn). I think there is a value judgement that is much more nuanced than what you are suggesting.