You're entitled to your own opinion, but not your own facts. You don't have to assume anything. Significantly more detailed information about how Google Sync works is available on Google's website and the settings themselves make it more than clear. The first time you sign into your Google account using Chrome the settings are chosen by Google, meaning sync everything. If you've already signed in and unselected any of the options, those items will not be synced to the next computer you use.
Google's warning is absolutely true for most people because the settings are hidden and once you've logged in there are no obvious warnings about that. That's dishonest and wrong (some would go so far as to say evil) but still completely different than what you're claiming - by your own admission based almost entirely on assumptions.
No, people shouldn't sign into Chrome because Google refuses to take security or user choice seriously. If you have to rely on FUD to justify it you're not paying enough attention.
Not sure what button I pushed to justify this outburst, but your arguments are neither consistent nor correct.
On the one hand, you complain about Google being dishonest and say that people shouldn't sign in to Chrome. On the other hand, you complain that I don't understand that sync can be turned off and that my arguments about using Chrome are therefore false.
I like much about Google and have used their products for years. I also have friends who are research scientists there. If Google is, as you say, dishonest in dealing with users, they are probably less so than most big online players, IMHO, which is why I expect to continue to use their products. But they make their money almost exclusively by selling targeted advertising, and I am not about to trust them to respect my privacy if they can get away with not doing so.
Sync is not the only reason I don't use Chrome for most browsing, but it IS a security risk unless one is vigilant about making sure that it is always turned off. Unfortunately, Google is relentless about trying to get users to relax their privacy settings. I have personally had the experience of activating a new device on a Google account and suddenly finding settings changed everywhere because some screen had a non-obvious pre-checked option to that effect.
Remember that most security breaches are caused by social exploits, not technical flaws. Google may not be as reckless in exposing their users to this kind of exploit as, say Facebook, but that is still the foundation of their business model. The best way to avoid getting burned is not to play with fire in the first place. That's why I rarely use Chrome and advise others not to do so when they have safer alternatives.