I agree, that one should be more worried about how Google uses the data.
I think I wrote about the US intelligence thingy, because it was closer to the topic. The question, why the court ruling went this way and what it rests on. If there was no possibility for the US to access the data, then Google could probably simply pinky finger swear, that they are not doing anything evil with the data and EU law might be fine with it.
Does it matter, whether the scenario is "exaggerated"? If it is possible, it needs to be considered by the law. Otherwise it might soon become less exaggerated and more reality than we would wish.