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In a general sense, it is true that the local ISP would potentially have a complete record of TCP connection requests, and DNS lookups (unless you are using a service like OpenDNS).. but I guess what worries me more about a browser being in constant communication with a web service is that it is basically tracking a lot of stuff you are doing on your own PC, as well as web-based stuff.
I think most people have a (perhaps faulty) idea that there is a clear division between what their PC does and what their PC tells the internet what it is doing. They might not be surprised if you told them their PC is probably sending a lot more data than they think to the internet. But if you told them their web browser was also a keylogger, that would definitely get their attention.
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alain