My recollection of this is that he was clearly joking at the time, but you are talking about a guy who gives the same speeches and talks hundreds of times a year, and it only takes one time for someone to take stuff out of context and present it badly.
I think if you met Eric you'd realize he's just another hacker who ended up becoming a CEO. If he was posting here, he would be indistinguishable from most people in terms of his views, concerns, etc.
That's fine, and it may very well be the case. But I don't think that the rest of the quotation is so profoundly different that just posting the first sentence misrepresents the quote.
It sounds like you're saying that the first part of the quotation doesn't accurately describe Schmidt's views on privacy. I don't know him, but, sure, most people have more than one sentence's worth of opinion on most issues. :)
I think if you met Eric you'd realize he's just another hacker who ended up becoming a CEO. If he was posting here, he would be indistinguishable from most people in terms of his views, concerns, etc.