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wick said:
A small price to pay for the amount of data they will collect


Thats something people don't seem to understand around here. Data mining is huge money for these companies and in general...

A place like Lavalife and Ashley Madison makes more money off the data they sell to advertisers than its official service. All they do is tag your machine with a cookie and then turn around and say "ok, we got a male 24-30 years old, income of 60K and likes computers, hockey and dogs. Who wants to target ads to this guy?". And adertisers and publishers pay big money for this data.

This is the main benefit to having Google on iPhone. While they are unable to collect personal information, they do know what mobile users do and like on iphones which gives them behaviour targeting opportunities.