I normally reply to people who cart this argument out: "so you're ok with someone following you around with a camera videoing you? At work....in the toilet....in the bedroom...?"
There's still a stigma, most places. It's a shame, and I wish there weren't, but there is. So it's not hard to see how that argument can have a hard time getting traction.
Oh, I just mean it as an example of something that you should absolutely do if you need it, but something that most people wouldn't want publicised (because of that stigma).
By the way anyone has a link to the full transcript/video? I can only find the cut version (and iirc there was something else between the trusted friend question and the quote, but all videos online have a cut/voiceover in between which is kinda suspicious).
(I seem to remember the "it" in the quote meant putting information online / publicly available, no the "something" that you don't want anyone to know)
The "it" in the quote meant, "if you're going to commit a crime, don't tell Google about it. If you tell a big company all about your plans to commit crimes, don't be surprised when the cops come knocking."
Schmidt has a way of saying reasonable things using the most offensive and misinterpreted language ever.
You never know, things you consider normal today might become retroactively punishable tomorrow. Maybe you "offend" someone on-line who in the future becomes powerful figure and they might bring vengeance on you or your family.
Privacy != doing something wrong.