Well, on the flip side of that, Google also needs to be able to sell Privacy to the end users, and if there is any significant breach of that, they lose trust, ads, and really profits all together. (Basically if no one trusts their data with Google, no one will use it)
Personally, I'd say Google is outright honest with what they do. They don't make up the "Google Man" false advertising, as Microsoft does the exact same thing that they said Google does, but Microsoft only does it for Spam fighting, while Google does it for Spam and ads. No person would likely be able to read all that data.
Also, up until recently, if I wanted an XB1, I would have to have a device in my house listening to *everything* I said.
There is also this, that Microsoft read a former employee's email by hand (albeit to check that the employee leaked Windows 7 and 8):
Microsoft scans blogger's Hotmail account to track down Windows 8 leaker | The Verge
Personally, Google sells ads, and privacy as they can't sell ads without privacy. Microsoft sells software. It's really who you trust more. I like Google's services, and I vastly prefer their search to Bing, but I do like my Lumia as well. I don't like F.U.D. though.
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