That said, yes, it is a bit stupid about the if you don't like it then move comment. It does appear to be taken slightly out of context but if you're the CEO of Google then you should be a tad more tactful with your remarks especially regarding privacy.
I do really have to wonder what's running through Schmidt's head at times, since this isn't anywhere near the first time he's blurted out one of these really stupid comments in regards to privacy. It's getting to the point where I'm reconsidering my use of any of their products, including search. Not that my lone act will affect their bottom line in any meaningful way, but it's pretty sad when I trust Microsoft's privacy policies more then Google.