So with google staying in the headlines i've done some digging and come up with why google was collecting Wi-Fi data in the first place:
SourceThe information that Google collects, and uses, is the unique identifier for the Wi-Fi base station and GPS coordinates of the station. However, if Google encounters a Wi- Fi base station that is not encrypted, then it also collected other information, including personal data. They claim this extraneous data collection was a mistake and they are not using this personal information at all.
So it would appear our initial assement was correct, the fault does not lie with google but with the idiots who dont know to encrypt their Wi-Fi data.
What a load of nonsense. Those Google cars drive down public roads just like anyone else; it's not like they're providing live feed of the inners workings of home security systems.
As for the wi-fi, if your network is unsecured then you are a noob and deserve to have people violate you.