It works just like it does on your desktop.
Desktop browsers don't usually send browsing histories anywhere. They do send referral data to any website that requests it. And no, I don't use "Chrome". Logging to a Google account logs search queries in a more personal way, but it's not something the browser itself does. Anyway, that's a reassuring.
Your cell carrier is more likely to leak that info to the boogey man and there's no way to turn that off. Google doesn't need to sneak in the back door.
My cellphone carrier isn't half as wise as to do that.
I have to assume that you don't use any social networks because they are way scarier than android.
I don't use any asocial networks because they don't interest me at all, and I don't have 582 "friends" anyway. And yes, I'm also not interested in those operators knowing everything about me - it's not so different from Google.
um, you miss the point about the transparency (lack of) in how they do it and what they do with it
I'm referring exactly to that. When a company has more financial, computational and human resources than most governments, to what extent are you ready to trust it to play by the rules?
One of the beauties of android is the open source and flexibility. You can make it into what you want. Again, don't get any cell phone because your other choices are more closed, secretive, and the privacy is unknown if not in fact doubtful. goog makes plenty of money without getting in bed with Big Brother.
Google IS the big brother

In case you've missed "Street View" - but that's just the tip of the iceberg. As for the cellphone itself - I've checked those issues with other cellphone as well, but you're missing one very important point - again -
few have the computation power and "information wisdom" to use it as Google can, does and might, and few have the breadth of information Google has
. Nokia, Samsung, Motorola etc. can't match it. That's a whole different level of basically everything. As for open source - yes, that's a big plus. It's worth noting, though, Android isn't really "open source" in the common community model, and that's a big drawback.
I'll also agree before I forget, Kies is the worst piece of software I've ever seen, but you'd be using that for the Wave too.
That's a bizarre twist of things! It was either "syncing the Wave with my desktop" or "syncing the Galaxy using Kies to avoid Google", but if they both use the same software and it's crappy, than all of a sudden the Galaxy is much preferable, just for the chance of having a better sync program somewhere amidst the large number of programs available for Android.
Recently a dash board was put on top of this that makes deductions about the data and summarises them for you. Where you work, where you live, where you visit and when, how much time you spend in certain places, etc.
That's truly just the tip of the iceberg. Such vast computational and financial resources (and of course human resources) as "Google" has allow you to draw much, much more thorough conclusions, and bear in mind even the above is only based on a couple of years' worth of use - what can you conclude based on a decade? A lifetime?
Had a long think and came to an interesting conclusion. As you say, it's the sort of info a PI could collect on anyone. At least it's being done with my knowledge and by a company I (believe I) understand the motives of.
No, a PI will not have half as much data without ten times the effort - not the mention the funds - and you're giving all this data virtually for free, out of your own good will. As for motives - those are similar for most businesses.