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The Ugliness of Privacy Notices
Not that I'm for IP logging, though, even if it means better search results. Consumers demand privacy and the market is providing it, which is exactly what we should expect from competitive discipline.
As a consumer myself, I don't assume that there's a good reason for Google's data retention policy. Most IT systems collect information by default, without regard to need and without balancing privacy considerations, so I assume that Google fell into the habit of long data-retention terms and that they may not have a fully justifiable reason for doing so, all things considered.
Trying to dictate data retention terms from the outside (i.e. through regulation) would be a fool's errand, and handing that authority to governments would lead to longer data retention terms and less privacy as the interests of law enforcement (more trumped up than genuine) would prevail.