To rephrase the question, spy on you with their Google Analytics? Do they take that information and then possibly use it against you?

I think this idea comes from the conspiracy theory would have you believe Google is evil. Of course, it is true that Google currently dominates many utilities on the web: e-mail, Analytics and other Google Apps.

However, Matt Cutts, an engineer from Google Web Spam team, officially declared that his team does not have access to Google Analytics and Google Analytics team has no access to their information. So they do not use Google Analytics against anyone.