The original story tries to implicate Google in opening their servers for "full take" data feed.
XKeyscore was a program to analyse data siphoned from wiretaps. This is what caused that infamous ppt slide "SSL Removed Here ;-)" which, among other reasons, caused Google to start encrypting all of the inter-data center links.
You are arguing about a program that has nothing to do with Assange's thesis that Google is an arm of the US State Department. This isn't merely semantics.
http://en.wikipedia.org/wiki/XKeyscore#Capabilities