Fundamentally flawed
A lot of people here seem, dare I say it, obsessed with repeating the charge that there is clearly an opt-out for Google but not for Phorm. That just simply is not true. Phorm has developed a network-based opt out that ensures none of your traffic whatsoever is analysed.
There are various news stories like this where public confirmation of the NBOO has been given. Try here for proof: http://www.v3.co.uk/vnunet/video/2244091/phorm-executives-discuss