No, the world's most popular search engine isn't going the way of Bulimic Britney; it's taking preemptive steps to avoid running afoul of the government.
Per the AP,
"Google Inc. is adopting new privacy measures to make it more difficult to connect online search requests with the people making them -- a move it believes could prevent showdowns with the government over the often sensitive data...Google believes it can provide more assurances of privacy by removing key pieces of identifying information from its system every 18 to 24 months."
The good news here: If you're perverse (and numbskulled) enough to enter search terms like "panty sniffing" into Google while still on the clock in your cubicle... well, the government's efforts to crackdown on kinky weirdos like yourself might have just become a mite harder.
The bad news? Your office IT guy? (You know, the one in the short sleeved dress-shirts and the tragic, pleated khakis?) He probably already knows what you're into. I'd start being nicer to him.