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You didn't read the article, did you? It's in their repair contract that you must agree to before sending things in for repair.
From a legal perspective, they didn't steal it...
...you gave it to them.
Depends. Where I live even signed contracts can be deemed illegal in parts if a clause is still seen as unexpected or surprising for the customer.
If Google included a clause that states the customer loses a kidney to them, wouldn't make it legal just because it's written there.
It's legal in the United States where consumer protection laws aren't as strong as in some other places.
You could be a serial killer making contracts with your victims, it would still be illegal.
This one isn't though. There's no law against it in the United States, thus it is legal.
Murder contracts specifically are illegal because they contract for an illegal activity. Giving your phone to Google isn't an illegal activity. Yes, it sounds and feels like theft, but it doesn't meet the legal definition of theft.