Very difficult argument, because its true to a degree, as the google chrome address bar is also a search. But at the same time, IE8 and Firefox do the same when you type in there search bars, every keystroke is sent to there to. The problem is the way chrome puts the address bar and the search bar together, something I personally very much like. And google has admitted this fact, and has disclosed that its all anonymous, and 98% of the data gathered is deleted.
Personally, if you search the internet you accept that your searches will be saved, and collected against you, nothing new there.