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Editor: this was announced in this brief post on Google Analytics blogs:
More choice for users: browser-based opt-out for Google Analytics on the way
Amy Chang, Group Product Manager, Google Analytics, March 18, 2010
As an enterprise-class web analytics solution, Google Analytics not only provides site owners with information on their website traffic and marketing effectiveness, it also does so with high regard for protecting user data privacy. Over the past year, we have been exploring ways to offer users more choice on how their data is collected by Google Analytics. We concluded that the best approach would be to develop a global browser based plug-in to allow users to opt out of being tracked by Google Analytics. Our engineers are now hard at work finalizing and testing this opt-out functionality. We look forward to make it globally available to our users in the coming weeks.
Read more.