Google and Our Government – Who’s Watching Whom?

I don’t know how you feel about it, but I’m pretty much incensed about what’s going on with Google and the requests from the government for its search records.
An Associated Press story from last week stated that a federal judge intends to order Google to turn over some of its Internet records to the U.S. Justice Department, but the judge “expressed reservations about requiring the company to divulge some of its most sensitive data — the actual requests that people enter into its popular search engine.”
What’s going on here? I thought we lived in the USA?
There are many differing reasons the government wants these records – everything from monitoring terrorist activity to protecting our youth from online predators. While I applaud the need to protect our nation and our children, does this mean that the government can request other companies to turn over their records as well? Must right-wing groups turn over their membership records? Must video rental stores give their customer’s rental habits/
You get the point.
Bottom line: There are certain freedoms we experience and these should not be compromised. Meanwhile, I am disappointed we can’t find a way to resolve this without compromising our liberties.