Is it possible that your impression of the company is (was?) off?
I'm not surprised. They (claim to) do something similar with the logs of their DNS service: two weeks of anonymized logs after which they "randomly sample a small subset for permanent storage".
I had the same reaction so this indeed hints at that I've got wrong expectations. One plus point for privacy, one minus point for handling a beach so badly.
Our default policy is to keep generic RPC server logs for O(weeks). It's best practice as we log a lot of structured data that can be large -- especially at our QPS. Furthermore, we have data retention timelines to keep.
You might find it surprising, but at Google it's common to do things like not returning anything when aggregating data from a small number of users. That's before even looking at projects like RAPPOR or ESA. Source: I had access to sensitive data many years ago.
Such policy existed since the very beginning of Google APIs, and is well documented within the company. Anyone who worked at Google should be aware of it.