According to the official Google Blog (http://googleblog.blogspot.com/), Google Search and Google Suggest will be providing better anonymity to users of those services.
According to Google they randomly select 2% of Google Suggest queries and store all information about them to help make the product better. "... We decided that we will anonymize [Suggest Requests] within about 24 hours (basically, as soon as we practically can) in the 2% of Google Suggest requests we use." says Urs Hölzle, Senior Vice President, Operations at Google. "This will take a little time to implement, but we expect it to be in place before the end of the month."
Google will also "anonymize IP addresses on our server logs after 9 months. ... significantly shortening our previous 18-month retention policy to address regulatory concerns and to take another step to improve privacy for our users."
I hope that the regulators and privacy junkies are finally appeased by Google's actions.
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