I was proud of Google for refusing the United States Justice Department's request for that information. Unfortunately, it seems that Google's done a total 180° on me. . . .
They've agreed to censor their services in China, including censoring words such as "democracy" and "human rights" from their search engine. :( Apparently the decision was "painful" but they think some access for China to Google is better than none.
I think that regardless of how they rationalise it, the decision was about business plain and simple. Google just didn't want to lose its market, so it compromised. >_<