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Google users: Check your privacy settings
Google is all like: "Dude! It's awesome! It's so much easier to understand and use!"
Detractors are like: "OMG! It's terrible! It like TOTALLY INVADES OUR PRIVACY!!!"
Avid Google users are more like: "Meh. Whatever."
So casual Google users are left with: "Wait, what?"
So what's the straight skinny?
First, read the policy. Second, take a look at this article from CNet that has a good analysis of what the changes are, if you should be concerned, and how to get around having Google track everything you do.