Why limit it to terrorism? With access to email, instant messages, social media streams, search terms and some damn fine data scientists Google could sniff out an awful lot of wrongdoing.
Should they be developing software to figure out who is beating their kids and notify the local police? Cheating on thier taxes and notify the IRS? Breaking their marriage vows and notify thier spouses?
The typical response here on HN is that the threat of terrorism is greatly overstated. This is probably true, but I don't think it's reasonable to assert that the threat of terrorism is nonexistent. Given the amount of people who use Google's services, I think it's highly likely that such data does exist on Google's servers.