Google has officially denied being a part of PRISM. The way you phrased this statement makes it sound like the OP is sneakily leaving out the PRISM implementation, which would be sneaky if Google were a part of PRISM.
(this doesn't mean that Google's isn't flat-out lying about everything...but you seem to be alleging a contradiction where there is none, at least in the OP)
> "Also the US government has confirmed that systematic collection of user data was indeed happening for non-US citizens. What of that? Are they users of lesser rights in the eyes of Google, etc?"
NSA's mandate since its inception is to conduct surveillance of foreign communications suspected to be a threat to America...So while it's still worth arguing whether the surveillance they conduct is unethical or unproductive, it's not going to be worthwhile arguing whether they do it at all.
edit: removed sarcasting phrasing that was too assholish for a Friday after work.