Comment by ScroogeMcDoug

There's obviously no inherent problem, but their reasoning is all theoretical and there's no reason not to expand it further based on their own logic. If you don't trust Google, why would you trust any of the other major players online like AWS, Azure, Cloudflare etc? Without those the internet basically doesn't work and you'd be better off not even bothering, thus meaning option 2 is the end result of the privacy minded.