It is possible to avoid using Google Search, GMail, and their many other services. On the other hand, other people will use Google's services in a way that allows Google to track you. Their advertising services, various APIs (analytics, maps, etc.), and even a friend with a GMail account are examples. Now my copious hosts file entries allows me to avoid some of that stuff. I do pay the price since various websites are broken, but it is a price that I'm willing to pay for a bit more privacy.

However, avoiding it altogether would be a self-imposed form of social exclusion.