Most blogs don't seem to have a privacy statement but should they have one to comply with Google TOS?
I agree sites should really have a privacy policy statement and in the UK if you are gathering info you need one by law. I have a couple of sites I am sailing close to the edge with myself as because there are no cookies or ads I have thus far not added PP statements, but I plan on doing so asap to make sure I comply due to the fact that an enquiry would result in my having someones email address and so I ought to make it very clear that email address goes no further than with me.
By what you just said K I perceive the US must have similar laws to those we have here in the UK, hence Googles Adsense policy. Logic tells me that adds up and explains why Google has an obligation to make that clear from the outset. I would imagine if they (Google) did not do so their insurance would be invalid and they could find theirselves with all sorts of complicated problems. Any insurance Company, for starters, would be able to pick holes in things else, and that's b4 we even get on to any canny lawyers working for those taking action against the likes of Google etc.
Google requires the privacy policy because they are using the double-dart cookie which tracks what sites you have visited and search terms you have used. If you would like more information about this practice and to know your choices about not having this information used by these companies, http://www.google.com/privacy_ads.html copied that last paragraph and the link from one of my privacy policies.