Who's Watching the Watchers?

Just how closely is Google (GOOG) watching you? A new report by three UC Berkeley graduate students indicates that of 400,000 sample Web domains, the company has a Google tracker—either Google Analytics, AdSense, DoubleClick, Google Widgets, or FriendConnect—on 88 percent of them. 88 percent. Google also has trackers on 92 of the 100 most popular Web sites.

But it's such a pleasant, well-meaning panopticon! It even uses goats to mow its lawns! How bad can it be?