Most sites plant cookies on your hard drive unless you change your settings to screen them so the first bit of that warning isn't that concerning.

BUT, these two are a bit of a worry:

5. Google hires spooks:
Matt Cutts, a key Google engineer, used to work for the National Security Agency. Google wants to hire more people with security clearances, so that they can peddle their corporate assets to the spooks in Washington.

[this is only speculation, but it's a concern if true]

6. Google's toolbar is spyware:
With the advanced features enabled, Google's free toolbar for Explorer phones home with every page you surf. Yes, it reads your cookie too, and sends along the last search terms you used in the toolbar. Their privacy policy confesses this, but that's only because Alexa lost a class-action lawsuit when their toolbar did the same thing, and their privacy policy failed to explain this. Worse yet, Google's toolbar updates to new versions quietly, and without asking. This means that if you have the toolbar installed, Google essentially has complete access to your hard disk every time you phone home. Most software vendors, and even Microsoft, ask if you'd like an updated version. But not Google.

[if you install the Google toolbar on your web browser, Google doesn't just check what you search, it takes note of EVERYTHING YOU DO. That's a bit too invasive for me]