The truth of the matter is Eric Schmidt has been wanting to be the big brother of EVERYTHING for a long,long time. The ONLY reason they want to "keep Apple from being big brother" is so GOOGLE can be big brother. And trust me. Google as big brother will mine all of your personal info,not care about your privacy and make as much money off you as they can without caring one bit.
I think you have confused two different concepts here.
Google use personalisation, based on your own browsing habits, searches and communications to make your searches better and more relevant. Google make the internet better, for you, and anyone (that's everyone!) who needs a layer of organisation on the chaotic network of interconnected content (web pages, images, maps etc.). You are free to opt out, but all search engines do them same, as would Apple if they made one. Google's business is driven by finding the right content for the right person. Portraying their data mining in a universally negative light is pure FUD - and there is no benefit for Google in putting irrelevant ads in front of people.
Apple, by contrast, act as the gatekeeper to the content on (many) mobile devices - what is delivered and how it is delivered. If it is not Apple approved, you will not be able to view it (and before anyone jumps in by pointing to web browsers, consider 1. how much "web" content is actually delivered by apps ... loads - youtube, Google Maps and 2. how many non-Apple browsers are there?). Furthermore, Apple have been completely upfront about their willingness to restrict content. If Apple could find a way to block ugly websites, you can bet your bottom dollar they would.
For a business like Google, devices that are content agnostic are extremely important. They cannot effectively put relevant content on a closed device. Users must be free to use the devices in any manner they see fit, not constrained to a limited set of approved applications. The open nature is so important, Chrome will not even force Google to be your default search engine,just so long as the platform is open.
This is particularly relevant to mobile internet, which has grown massively and the only reason Google have
had to make a phone is because Apple have made one good enough that people are (generally unknowingly) sacrificing their freedom to choose and a small, but significant, closed platform is growing.
Ultimately, that is why Apple is the Big Brother.
Sure Google know lots about you but they don't stop you getting information you are looking for - in fact their very business
depends on being able to find what you are looking for. Apple are the ones who control and restrict the access to content and therefore have the ability to rewrite the past. Basically Apple, for iPhone and iPad owners, they are the Ministry of Truth.