Gist is that even if you remove Google Toolbar it continues to spy on you. Or something. The whole mess can be found here and I defy anyone to dig through the whole thing.
FWIW, the big brain who did this research is named Ben Edelman, and he has a law degree plus a Ph.D. in economics, both from Harvard, and dual undergrad degrees, also from Harvard. According to his online bio, he consults for corporate clients, including Microsoft.
Not that there’s anything wrong with that.