Re: I don't believe the conspiracy
No, there isn't a conspiracy - it's all out in the open and everyone seems to be playing the same game.
Why compromise the router when they already know all about you centrally
They know something about me centrally, I'm sure, but it isn't that meaningful or useful compared to what they could know if I fully embraced Google.
With this thing Google would have the same level of access to my internet traffic as my ISP has (even more, actually, since it gets in before the ISP sees what's going out). While I accept that my ISP can see all my traffic, it's primary function is to shift that traffic where it's supposed to go and not to monetize it. Google's primary aim is to make money out of aggregating and selling information : do you really think they're going to resist the urge to do something with it?
I don't, so no, not never.