Google offers services as trojan horses. It is presented as a free gift. But in reality, it is an intrusion into your privacy. People think they already know that. But I don't believe they know the extent of it. That trojan horse mentality extends to everything Google does, including the keyboards used in Android and Chrome.
Google has updated its keyboard offering by adding a data mining feature disguised as improved autocorrect. It watches everything you type, and compares it to everything else you have typed into other Google services. It is logging your keystrokes. One commenter said that when Show Characters is on, it even suggest passwords when typing in that field. Google users seem to be willing to accept any intrusion as long as the horse is pretty, and the logo is not Apple .
When introducing IE 8, Microsoft of all people, pointed out that Google Chrome used key logging to capture every keystroke while using that browser. You can watch the embedded video and see it in action for yourself.