Chrome browser for iOS: broken incognito mode

We know how much Google loves our privacy. Sorry, our private data... Different story, though.

Anyhoo, Big G's Chrome browser for iOS has the obligatory 'private' mode - i.e. 'Incognito' Mode. Your search history should, so the promise, go whooooosh - into oblivion.
But not so: Switch to normal mode and there's all the filth of, um, sneezing pandas and meth-pushing highschool teachers that you accumulated during your private browsery.

A video to prove it can be seen on Youtube... http://www.youtube.com/watch?v=61SzHpGGFRs