Didn't Eric Schmidt say something like you should not be doing things you want to hide? To follow that thought, what is wrong with Facebook's idea of everybody is a friend and my life is an open book?
Schmidt's quote was taken out context and his view has been grossly misrepresented. In context, he said that when required by local laws, Google has to provide records, so don't give Google any data you don't want the government to be able to get their hands on.
Schmidt is stepping down as a CEO in a month or so.