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It's not a big deal. Any time you use Google search, or pretty well anything else on the Internet, data is being stored and used for advertising purposes. It's a lot more benign than 'those who are paranoid' would make it out to be. Location data is stored so that apps are aware of surrounding, nearby businesses. Without such data, how in the world could the app point you to the nearest filling station, a list of hotels, etc. I wouldn't pay too much heed.
The Google account is basically just a Google email address. You need an account to access the Play Store for apps, and so your Google email app can be functional. I have had a couple of accounts for many years with Google. Trust me, no harm has come to me, and I'm not the least bit concerned. The data collected is a lot more anonymous than the parnoid would make you believe.
The sync feature can be controlled to the degree you wish in your phone settings. The sync allows your phone data, contact list, etc. to be backed up on the Google servers (in the 'Cloud', so to speak). This will be useful to you in the event your phone is damaged, fails, or lost. The backup will allow a replacement phone to be fully up and running as it was in little time.
When you first get your phone, take the time to go through each and every setting so that you can understand and control the above features as you wish. If something doesn't make sense, post the question and someone here should be able to explain it. Trust me, it's a little daunting and confusing at first. But it soon makes sense and becomes effortless. Just remember that the more you lock down your phone the less functional it becomes. However, you don't want to go to the other extreme and leave everything uncontrolled.
Dave

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