Yes, that is exactly their goal. Google services, from the Play store to search to Google plus is all designed with exactly this in mind. What most people don't understand is "if you're not paying for the product, you are the product. When I use Gmail, I know what I'm signing up for.
I don’t remember where I first heard this, but increasingly “if you’re not paying for the product, you’re the training data.”. (Doesn’t invalidate your point, which I agree with)