What he said was...
"If you have something that you don't want anyone to know, maybe you shouldn't be doing it in the first place,"
What we heard was
"If you have something that you don't want anyone to know, you are a sad wanker | child molestor | terrorist (you take your pick)"
The problem is that he did not say that his users with something to hide are criminals, he just said it probably does not make sense to use Google if you want to keep that information private.
For example, I'm working on a new product for my company, in doing so I Google various aspects of the new product and Google logs that fact. It would upset me to think that our competitors are being tipped off about this but in the light of this statement I should not be surprised. I should, indeed, not be using Google to look up information about the new product.
I am not being a criminal, I am just being naive by using Google. It would be better for me to use something like scroogle or possibly spread my searches over various search engines.
Now there are people who say that Google should not be recording the information. Well of course they should. For one the US Government appears (in their paranoia) to require it and perhaps more importantly Google are not a charity, they are in the advertising business and if there is one thing that we can say about the advertising industry it is that they have the morals of a degenerate banker. So that is they will doing anything to get ahead of the game. As so many people have observed, we are none of us obliged to use Google (or any other search engine) it is just that we have decided to live with the risks given the convenience. You are using their web site, don't be too outraged when you find that you have to play by their rules and did not bother to read the fine print first.
So if you have got something to hide (your habbit, your taste in pornography, or your company secrets) I suggest you use scroogle. The rest of us can carry on using Google until the men in dark glasses come knocking.