Well, that didn't take long. Google has admitted that putting Clause 11 into its EULA was a mistake. Frankly, it's a cut-and-paste error as I had guessed. As reported in a number of places (see, for example, CNET). Google has pulled the unnecessary language.

It was never clear to me how Google planned to capture any of the customer's data from general use of Chrome in the first place. One thing that is pretty clear is that Google will store auto-suggest and search-box info, along with the originating IP address. I'm sure Google has its own business purposes for this, but to me it looks like a prime target for bad guys in black hats and bad guys with legal discovery motions, all of whom would love to get their hands on peoples' search histories.