I would even support this argument if google wasn't evil and wouldn't store personalized search logs themselves. Then this would indeed be a privacy win.
The way things are now this smells suspiciously like an attempt to further monopolize useful data that were available to webmasters before and kicking out competitors in the web analytics space. You might argue (with good reasons) that these data should have remained private from the beginning, but then google should stop logging them first and only then remove them from the results. The other way round it's "do as we say, not as we do."