The second statement you have highlighted is used so that Google can, if you exercise your right to, publish your docs online, they have a right to.
The first statement is the most important and the overarching statement.
This statement is sorta interesting: <<This kinda scares me a bit that google may look and possibly use my work.>> Google does look at any private documents. However, any document that is public or shared with any other user is scanned to check to make sure it is not in violation of Terms of Service (meaning that it is malicious, spammy, etc.). However, most likely you would never have known this. Just something that may put you at ease while we're disclosing what Google does and does not do.
Hope this helps! Let me know if you have any other questions!