I love of all things Google - I use GMail, Google Docs, Blogger, Analytics, AppEngine, and GWT. But that doesn't stop me thinking things are wrong with the big G.
One of the important things about capitalism is it's darwinian nature. One of the things wrong with most companies is that they are, for all intents and purposes, command economies. Google tries very hard to allow darwinian nature in, but there is a serious problem.
Google is the TRS-80 of the cloud era. It is amazing that it works, and it is creating a new world, but that doesn't mean it is of the new world. The TRS-80 was no Apple PowerBook.
Google is the leading edge, and thus being technically right is important, but for what comes next, design is more important than algorithms. So, who is going to be the Apple of the Cloud Computing era?