Not exactly correct. If the URL you click on is HTTPS, then the referrer is sent. HTTPS->HTTP no referrer. HTTPS->HTTPS referrer (even if the domain changes). The encryption is preventing the network from seeing the data, not the remote hosts. If the browser sends the referrer encrypted, even to a different remote host, the network still can't see it.

Cool.

But I still think it's mostly a hollow offering since they're the ones collecting and profiling us the most (or perhaps tied with Facebook).

Translation: I am convinced beyond help that Google is evil, I am trying to find any and all reasons to point out how evil they are. However, currently I am out of ideas.

Not that they're evil. I use Google for a bunch of stuff - personal email, search, adsense, analytics, and have for years. I just think it's a bit of a fallacy to protect us from 'someone else' knowing about us given the penetration they have into most internet users lives.

Their business model is to give you relevant ads based on information that you give them in exchange of using their service. They even let you opt-out[1] of their system so that they can't track you and give you relevant ads (enjoy tampon ads on programing page).

Better yet. Use noScript, ad-blocker, flash-blocker, don't use Google services (or at least use privacy mode on search), in addition to opting-out from Advertising cookie[1].

[1] Google Advertising Cookie Opt-out: http://www.google.com/privacy_ads.html

Double-click Advertising Cookie Opt-out: http://www.doubleclick.com/privacy/dart_adserving.aspx

As for me, the least I can do is to support a company, while not with a perfect track record, has championed and fought for an open web with plethora of free and exceptional services.

I can live with that, knowing that I have the option to opt-out whenever I want to.