Hair-raising stuff, Gary - that raises all the Empire Strikes Back connotations that keep many of us awake at night. However, my initial response was that this was probably an oversight, where the company's lawyers just copied across boilerplate from the main Google service. The same thing happened with MySpace, where they effectively claimed copyright over all material posted (including music) until Billy Bragg challenged them.
This turns out to have been the case, according to
BBC News. Google senior product counsel Rebecca Ward is quoted saying that Google had reused its Universal Terms of Service "to keep things simple for our users" and has subsequently dropped that bit from the Chrome licence.
Thanks for raising it all the same, and for your comments elsewhere on the Sage 50 2009 release.