Google doesn't really want to get into a heated discussion about the evils of a search engine knowing everything you've ever searched for. Stones, glass houses, etc.
(Given Google's near-monopoly of the market, Microsoft and DDG have some amusing competitive synergy going on, don't they. DDG can criticize Google all they please for retaining user data because DDG doesn't and isn't in a position to benefit from it. Microsoft, which certainly is in a position to benefit from it, doesn't need to worry about Google calling them on it because Google is the only search engine that can actually lose market share over the issue.)
For all Google’s sins, there is a Dashboard that let you erase all you care them not to know: Google could promote that heavily in case of stone, glass house. I always assumed this would be a great way to learn more about queries: spotting what words people are ashamed to have searched for.
It could be something a registered user could set from a browser toggle, and DuckDuckGo is a very good project, or course. My point was: data portability and user control are within Google's long term interest, not being evasive about their data cache.
This is what all toolbars do, and is largely the point of why big companies offer them and pay little software companies to make them optional installs (see Corel's WinZip, which installs the Google toolbar)
Let’s agree “not hiding” is what is in the demo video. TOS… we all know they could add that you sell the soul and the virginity of your mother in there, no one would read it.
It only records that when the user has explicitly agreed to send anonymous data. chrome and Google toolbar do that too and so do most of the toolbars out there.