The nice part about using Google is first off it offers speed advantages (as most people will have Google's JQuery lib cached already), secondly I don't expect Google to get hacked, and lastly we have Google's permission to do exactly that.
Nonsense. Users can very likely block Google Analytics on your site with ease, and without impacting the rest of your site's functionality. That's not necessarily the case when more critical content is served from Google's servers.
Regardless of what your privacy policy states, the responsible thing to do is to at least give your users the option of opting out of such tracking by third-parties, all while still leaving your site usable.