What amuses me about it is the link they provide for the "storm of protests". One guy posted one thread on this site, and the comments are as follows: "snore", "boo friggin hoo", "yawn"...ya, real storm going on over there.
While I don't like that there is this tracking cookie tie in, I am able to opt-out, actually your have to opt-in, it is not a default setting. Also, did the users really think that Google was just going to give a bunch of developers to the project without looking for something in return? Are people really that deluded about the open source community?
But back to the data collection (quick version) - check your links before you click on them and no your bank will never solicit you to input all your data on their super secret website. Follow those rules and you don't need to turn the phishing protection on. One less group collecting data on your surfing habits.