I doubt much people using Google think that their data would just magically disappear the moment they click a button, to the contrary, I believe most qualified users would know that their data is forever stored, maybe "anonymized" sure (but can still be correlated back).

If some users think this, have they question the Why would they do it? Why would Google lose money that way? ToS is irrelevant when it comes to what's running on their own private infra.