It might ignore the value, but it's not incorrect. If Chrome is sending to Google every character typed into the URL bar, that's literally a networked keylogge

It might ignore the value, but it's not incorrect. If Chrome is sending to Google every character typed into the URL bar, that's literally a networked keylogger and can presumably be used for all the same nefarious purposes as a "malicious" keylogger. The perceived value this feature provides is meaningless in the context of privacy/security. I bet all those keypresses are stored permanently, associated with your Google account, but that's another issue altogether.