Gizmodo has no doubts at all about this. Their blog post is titled "Google's Broken Promise: the End of Don't be Evil." They do a very nice job of contrasting previous privacy policies with the new one, to help make the profound shift more obvious.
All of that data history will now be explicitly cross-referenced. Although it refers to providing users a better experience (read: more highly tailored results), presumably it is so that Google can deliver more highly targeted ads. (There has, incidentally, never been a better time to familiarize yourself with Google's Ad Preferences.)
And Google keeps wondering why their social media efforts keep falling flat!