I'm reading more and more information lately relating to Google's privacy issues , but it's becoming more evident that Google may be drawing biased conclusions or predicting intent from the webmasters or companies that own many domains.

At SMX Seattle Matt Cutts was asked about Google's intent to use registrar data against webmasters (via John Andrews of Johnon.com). His reply was (paraphrased):

...The existence of additional domains with matching registration information is directly relevant. He gave an example of “spammy” domains suggesting a webmaster’s spammy character. He defended Google’s consideration of that “evidence” when evaluating a web site.

This seems a little subjective to me. How can Google determine the intent of a company or webmaster that owns 50 to 100 or more domains with some falling into the low quality category? Are they going to penalize or weigh against the few good quality sites that the webmaster owns? This seems a little scary to me, especially since Google wants webmasters to be forthright with their domains, ownership, and intent in the first place.

John also notes:

For optimizers and the business owners hiring them, it is more important than ever to understand the mindset of the Google quality people, such as Matt Cutts. The more competitive you are, the more likely Google humans will be involved in the process of ranking your web pages.

Any such manual reviews by Google's quality people would seem to be a patch job at best. There are so many subjective variables to consider with domain ownership, the owner's intent, or the mindset of the webmaster. What do you think? Is this a fair practice by Google or too strict of a policy?