References:
"Get predictions in the address bar" https://support.google.com/chrome/answer/95656?hl=en
"Logging policies for omnibox predictions" https://support.google.com/chrome/answer/180655?hl=en
Even Firefox' Mobile Awesomebar doesn't do that[1] unless you click that "Yes" button.
On the other hand, Google's Chrome browser is clear about the fact that it does send everything in the omnibar[2]:
> When you type URLs or queries in the Chrome address bar (omnibox) or App Launcher search box, the letters you type may be sent to your default search engine so that the search engine’s prediction feature can automatically recommend terms or URLs you may be looking for.
If you still believe you are right, I would be interested in seeing your sources.
[0]: https://support.mozilla.org/en-US/kb/awesome-bar-find-your-b...
[1]: https://blog.mozilla.org/privacy/2013/01/08/search-suggestio...
Obviously, I can't prove that it doesn't send search suggestions by giving you a link to the code, since it isn't there. If you want to make sure for yourself, I advise using Wireshark.
It could be said Google already have your browsing history (of sites that they serve adverts on, or that use their analytics). I doubt Chrome's syncing data would give them any more information than what they have already.
and it's quite easy to block Google from tracking your browsing habits using GA or Ads: just use an Adblocker and something like Ghostery, RequestPolicy or Disconnect to block Google Analytics.
https://support.google.com/chrome/answer/1181035 contains info on how the encryption works.
chrome://terms/ links to https://www.google.com/intl/en/chrome/browser/privacy/ which links to http://www.google.com/policies/privacy/ to define "how we use information we collect." From that page: "We use the information we collect from all of our services to provide, maintain, protect and improve them, to develop new ones, and to protect Google and our users. We also use this information to offer you tailored content – like giving you more relevant search results and ads."
Your full browsing history is a treasure trove of information useful for making Google's core services (search and ads) more effective. They would be stupid not to use it to improve the quality of their services. I challenge your assertion that Chrome is an altruistic endeavor.