Someone pays Google, gets your usage data (and can do with it whatever they want).
In selling targetted ads:
Someone pays Google and gives them a specification of what kind of people they'd like to see the ads, and Google uses the usage data they already have to select who to show the ad to.
At the end:
In the former case, Google and the third party both have your data.
In the latter case, Google has the data, and the third party does not.
> The paranoid user is worried Google will have access to my saved sites and sell my usage stats.
Google doesn't have access to your bookmarks if you set your Chrome sync encryption password to something other than your Google password. When first launching the new bookmark manager, you'll even get a privacy message in the manager reminding you that Google does not have access to your custom sync encryption password.
The paranoid user is worried Google will have access to my saved sites and sell my usage stats.
The nostalgic user is still irritated that Google Reader could have still been saved and this feature appended.