Google's new privacy policy good or bad?

Today, Google announced on their Official Blog that they have redesigned their privacy policies for their services (numbering well over 70), and are looking to unify the bulk of them under one privacy policy. It's actually great news. Under the newly announced policy, Google services can share information gathered about you with other Google services.

The policy is generally innocent, but there's a specific paragraph that could be used for good, or not so good purposes:

"Our new Privacy Policy makes clear that, if you're signed in, we may combine information you've provided from one service with information from other services. In short, we'll treat you as a single user across all our products, which will mean a simpler, more intuitive Google experience."