Because of Google’s practices I used AltaVista for a while until they turned into Yahoo.
Recently I switched back to Dogpile, and have been pretty happy with that. They at least run Christian supporting headers on their site from time to time.
As far as sharing search data with Fed’s, it would not surprise me if all of them do.
But I still totally mistrust Google,Yahoo and others.
The one thing they never tell you about paranoia, is that it is a time-tested self preservation and survival mechanism that has made the difference between life and death.