IMO Android is more disturbing than a few quirks. Because it is inseparable from Google there may be serious privacy concerns.
Google is no different than Apple or Microsoft.
But saying Android is inseparable from Google is a bit misleading.
You are not required to have anything more than a gmail account to use Android. And that is only to setup Android Market access so you can install apps. Speaking of which, you are not even required to do that as you can always side load apps via ADB.
You are not forced to use that account for email on the phone, you can access email from another provider and Google will not be able to access any of that content.
With Windows Phone 7, you are required to have a Windows Live account, but again, you are not required to use it for anything other than Marketplace access.
Same applies to iOS and Apple devices. You need an iTunes account to download apps.
As for the rest of the data Google collects, you have a choice in what they collect.
Mindless idiots who want instant gratification will always click the accept button on those privacy statements.
Some of us actually read them and make an informed decision as to what I will and will not allow Google to see.
What I let them see is all my junk mail that gets dumped into my unused gmail account.
My real email account is safe from their eyes.
Remember, Google can't touch any of your personal info without your consent.

Read before you click.
There has never been 100% privacy, only degrees of privacy. But Apple isn't actively seeking very personal information like our medical records and such.
Source?
IMO Google crossed the line a long time ago with its search engine tactics. Now they want you to keep your life in one centralized database--Google's. Given Google's track record, why in the world would anyone want Google attached to the hip?! Perfect example is Molly Wood's article at CNET "Google Buzz: Privacy Nightmare" (
http://news.cnet.com/8301-31322_3-10451428-256.html).
Automatically opting people in was a Google eff up of epic proportions, but it was resolved pretty quick.
And again, you can always turn it off.
