EPIC's page on the Google books settlement and privacy is excellent.
Update: James Grimmelmann has just launched a new site, the public index, for discussion of the Google Book Search case, including a fairly comprehensive archive of litigation documents and analytical articles. It's along the same lines as writetoreply triggered by the draft Digital Britain report with a collection of extra resources. Again recommended.
Update 2: Pamela Samuelson's succinct take on the problems with the settlement.