Eric Schmidt has a way with words. And that way has made Google consistently more and more off-putting from my perspective. The message seems clear: we don't think you should have privacy. Disagree? No problem. Go somewhere else. But that's a problem if there is nowhere else to go... True, I don't have to use Google. But Google might offer the best search solution or the best social network. I guess I'm just out of luck in that case. ;\
It was that they can't provide you with real privacy (against, say, governments), so they're not going to pretend like they do. If you want real privacy, this isn't the social network for you (and personally, I don't think there is one, but there's likely a market for it -- a tor-esque anonymizing social network would be pretty awesome).
On top of that, that it's useful to know that everyone on G+ has passed some minimum bar that they're who they say they are. A low minimum, but a minimum.
For the first part, there are some distinctions ignored, specifically pseudonyms. I suspect the answer is "we don't really care about pseudonyms." For the second, I can see it making sense the same way a financial exchange does. You know there are crooks and ways to cheat, but you also know that even the low degree of securities law enforcement is substantial enough to make your transactions pretty safe.
>On top of that, that it's useful to know that everyone on G+ has passed some minimum bar that they're who they say they are. A low minimum, but a minimum.