Google News Changes - Personalized News Source or Big Brother Monitoring?

There's a video from Google on its Google Blog today, introducing today's revamped Google News -- and while it sounds nice (doesn't Google always sound nice?), I gotta wonder.

How much is Google monitoring what we're reading for its own devices?

Should we be selecting the stories we read, or was it better, when the editors sorted stories according to importance - what we the public might need to know?

The fact that the video uses "Tom Cruise" as an example of how to cull your news to fit your interests, does this tell us something scary about things today?