These are big companies and putting pressure on them like this is both practical (just pick your data-hosting European country carefully, though) and could create economic leverage on Congress, but I think it's kind of bullshit when these transparency reports mention receiving between "0-999" National Security Letters, and Eric Schmidt is telling people about the PATRIOT Act requiring them to hand over information, and now you're saying "what?? they're handing over data because of an order that doesn't require probable cause established in front of a judge?"
I don't want to come off as too harsh here, but, yes, this is what we've been banging the drum on for years about. Jewel v NSA[1] is very nearly 5 years old now, and the executive branch is trying to drag it out even longer. Welcome to the fight; let's try to make our country livable instead of dreaming about jumping ship but doing nothing in the meantime.
This means Google (and the other American companies, too) has a problem of loyalty now, and I'd say a huge one. It's only a matter of time before such services arrive, and I'd like to believe people will start quitting it in droves.
I see it much like with the ISP situation in US. People don't really have a choice of ISP's, but they've grown to hate them so much over the years, that as soon as a decent competitor is around, they'll be switching. I believe (and hope) the same will happen to the American companies, including Google - at least until this mess is fixed, and the Patriot Act repealed.
So I do believe the Patriot Act, and the uncovering of what it can really be done with it has caused irreparable damage to US companies. I received a Chrome update yesterday, and now I have to wonder "is it just a coincidence? Or is it to remove some tracking technology they had it until now, so people don't find out about it when all the spotlights are on them now?".
Could be a genuine question, or maybe I'm just too paranoid, but the point is these unveilings made me feel this way (the Google "privacy issues" never bothered me before, and I was actually waiting for Google Glass - not anymore obviously), and I don't think anything Google and others say in the future will make me feel otherwise, until there are concrete steps done, wide in the open, to stop this kind of surveillance.