Re: Interesting article about Android, what abour WP8?
Android is open-source - you are free to take the code apart to see if it is in fact reporting things about you that it shouldn't (note that you can opt out of things like location tracking etc). I much prefer this to WP, which is closed-source. Hell, rebuild it from source and flash to a Nexus if that's what you want...
This feature is IMHO very useful. I change my phone around twice a year and it saves a lot of trouble having to go around adding wifi passwords again. And like you said, I can't imagine what Google will do with a bunch of SSIDs and passwords, so I don't mind letting them have it.
While your first point is true in principle, the VAST majority of people lack the expertise to examine the code and wouldn't if they could. After all, who reads T&C's for every site they subscribe to and that's in plain English? For that VAST majority, a closed ecosystem is far better as it helps reduce malware - to invisibility in the case of Windows Phone.
Another thing to bare in mind is that while open source is a good answer to surveillance by the state, it also makes it far easier for hackers to find weaknesses to exploit, so while open source has become the mantra in techie circles, there are advantages to in house development by a company like Microsoft.
Of course rebuilding Android would take thousands of hours and you would still end up with something insecure, buggy and laggy; it runs Java for Pete's sake. This is why I'm anti-Android, it can't be fixed.
I recently changed my mobile devices and used Onenote to copy my Wi-Fi password to the new devices. Once I'd joined the network with the new devices, I deleted all copies of the note containing the password. As a solution it isn't perfect, but the window of opportunity for a hacker is small and the compromise was worth the risk. It would have been better if Microsoft encrypted files stored in Skydrive, but that's something I'm hoping they'll instigate, along with VPN and PGP for everybody.
Your final sentence is quite funny. Perhaps you haven't followed the news, but Google have been indicted and are awaiting trial on courts in both the US and Europe for breaching personal privicy. That means they've already breached people's trust, so you'd have to be a fool to trust them and just because YOU can't imagine what harm can be done with a database of SSIDs and passwords doesn't mean THEY can't. Google have to make this information pay somehow.