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I don't know what to think about Google. I love using their products and I'm glad that a big company is promoting open-source technologies, but the information collecting does concern me a little bit. If you do install Chrome and are concerned about privacy, turn off the crash reporting option.
I've seen it, but that's just the auto-completion for the information bar. When you type in something, it sends out those requests so that it pulls in those next lists of words. The same thing is done when you go to Bing or Yahoo's search site. If it was broadcasting your IP Address over an unencrypted GET, then I'd be concerned.
Of course, for the truly paranoid, there's always Scroogle. I'd also recommend wearing a tin-foil hat to be safe. :)
https://ssl.scroogle.org
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