I can go and imagine a hundred scenarios that involve some company the size of google in the jurisdiction that it is in leading to some form of abuse but frankly what I can imagine is not relevant, what is relevant is whether or not this is desirable and imnsho it is not.
The fact that google creates all kinds of legal loopholes and that the Google Ambassador to HN finds it sufficient to point out that indeed something changes behind the scenes (namely, that google dissociates your searches from your account and nothing more) says enough.
I hope that nobody here is naive enough not to see the size of the loopholes that statement creates.