Chinese Google is doing political censorship on chinese history, so its's a real problem (I think chinese people could solve this by using TOR). If you believe Snowden, Google is cooperating with CIA also.
As you wrote, it's natural for corporation to collude with governments instead of fighting them.

So blockchains and cryptography are part of the solution (for both privacy and censorship problems). Governments could make laws to protect privacy, but this is beyond our will.
I am more scared about violation of privacy than virtual damnatio memoriae. Personally I try not to give my real name to FB or Google, but it would be easy for them to link my accounts to my real identity with little effort.

The optimist in me says awareness and technology will save us.
I think Steemit is a step in the right direction.