@Mediocrates
Yes, I read the article, and I understand every aspect of what is going on. The article itself is low-grade tabloid journalism, which is nothing but flame bait.
The point is, your router's MAC cannot be used to track you on the internet. There is no privacy issue. Google know that a certain MAC address is at a specific latitude and longitude. As does your neighbour and any "tom dick or harry" that passes your house. As long as you're using WPA2, they don't know the public IP of your access point or anything about you.
The passer-by with an Android phone sends your MAC to Google using *his* IP address. So, what have Google learned about you at this point? Nothing; they simply know that the Android phone owner saw a very anonymous MAC. Google cannot gain from knowing your MAC, other than using it for geo-location services. That's the bargain that Google is making. Android owners are going to improve google's geo-location service in exchange for having a better service.
It think people panicking about this issue have confused MAC addresses and IP addresses. If I could geo-locate you by IP address, that would be a serious issue. I can know your public IP address if you go to my web site, but I cannot know your MAC address, and neither can Google.
The article makes one interesting, but ultimately moot point. They point out that an Android phone owner spends more time at home or work, and will give inevitably submit their own MAC using their own Internet connection, thus enabling Google to geo-locate their IP address. Remember, this is an opt-in feature, so the Android owner has volunteered to do this.
It's a moot point anyway, because Google already know where Android and iPhone and Blackberry owners spend time because they've probably used location based services in the past anyway. Any time you use Google maps or Navigation on a smartphone, Google know where you are. If that doesn't freak you out, but google knowing your MAC does, you've got your priorities all wrong.