I can't be asked to re-read the whole thing, but the containment conditions for your information are exceptionally weak. As long as you have any sort of business relation with Google, the terms allow them to share your information. Thus, if you supply toilet paper to Google it's enough.
There is, however, a much more dangerous aspect which Google is skirting. Under UK as well as EU data protection laws, accessing "sensitive" information about you (i.e. what medicine you look up, or which financial service you use for, say, debt management) requires EXPLICIT permission from the user (let me spell that out for you: Google needs to ask your permission in a separate, isolated statement, not embedded in light grey 6 point on white font somewhere down in the ToS). As far as I know, it has not done so for the majority of its current users in Europe which seems to put them in breach - yet again.
They really seem to consider fines just the cost of doing business, and given what the FTC fined them you cannot really blame them for having that opinion. I call that a Wall Street spillover - after all, that's the attitude that gave us global economic crisis III.