> This gives them the advantage of you only being able to see what Google Searches brought people to their site through Google Analytics
Search terms come in Google's Webmaster Tools. You can only get them in Analytics if you hook up your Webmaster Tools account to your Analytics Account.
It is true that it does promote analytics. However, one key feature of Google analytics giving privacy as a normal user is that you can never actually look at the profile of a user. You can look at stats such as 10/100 people used the "Best Hammers" search term, and that 80/100 people come from the United States. But you can't say look at X IP address and see where they come from, what browser they use, and what search term they used.
This gives them the advantage of you only being able to see what Google Searches brought people to their site through Google Analytics.