In a secondary way, maybe. I guess it depends on how you look at it. A product to me is the thing that is being sold. I wouldn't think of it as "I'm buying a chip" when I buy a phone. In the same way, Google is building their advertising product with consumer data as a component, but it's not the end product. Using that line obscures that fact and leads to the uninformed to believe that our data is being sold.
It's pedantic, but affects perception in a large way.
Edit: Using a physical product as an example probably wasn't the best way to go... oh well. You get the picture.
