Unless we’re legally required to retain log data for longer, we will anonymize our server logs after a limited period of time. When we implement this policy change in the coming months, we will continue to keep server log data (so that we can improve Google’s services and protect them from security and other abuses)—but will make this data much more anonymous, so that it can no longer be identified with individual users, after 18-24 months.
Using a proxy (and other methods) is a good way to remain anonymous now, but it’s nice that Google is taking the steps to assure better privacy for everyone. I am not sure how much this really matters in the grand scheme of things though. They will be “non-anonymous” for up to two years before going anonymous.
Source: Google Blog