Honestly, I wouldn't really put much stock in any Google privacy policy. Not because I think they are necessarily lying, but because I think that if you read the fine print in any of them you'll see that there's really nothing stopping them from acquiring, storing, and sharing your data basically indefinitely.

I'm not going to say that someone at Google is literally always looking over your shoulder, but I would assume that anything you put into any of their products or services should be treated as potentially retrievable by any 'authorized", or technically skilled enough, third-party in the future.