As squeaky clean as everyone in the valley believes Google to be, even most Googlers would be surprised with the type of work and contacts taken on by Google Federal (hint: it's not just Google Apps for the military). Here is a list of their current unclassified military contracts: https://www.fpds.gov/ezsearch/fpdsportal?indexName=awardfull...
If you're going to make a claim and drop a link on us, please tell us what's actually there to support your claim.
Most googlers who are also engineers can find out what most of these things are, and I would expect many are already aware of what those projects are likely to be. It is a core part of our culture that we share information openly within engineering, and don't leak it.
We can't tell you what's happening. That doesn't mean we don't know.
The NSA thing is disappointing and it's important that the electorate hold the government accountable, but democracy has not broken down yet, and the situation isn't quite as dire as, say, North Korea.
(Waiting for the "google employee compares US government to North Korea" headline, sigh...)
If you assume they're completely profit driven, it still makes sense for them to protect your data from other companies.