I think there are good arguments going on here.
Let me add to the argument that Google produces nothing good besides Gmail and Search.
There are a lot more things good than some of you realize...
1. Google Chrome Browser: Next to Gmail and search this is by far the best product Google has launched in many years...sure they kind of used ideas from Apple to build it, but they made it sync very well across platforms. They also made is much simpler. Combining the search bar with the address bar is just the natural step and I really with Safari adopts this soon. Apple is all about simplicity aren't they? Google also managed to create a browser that's way faster at initial launch and just overall browsing is way faster than any other browser out there. Safari and Opera users might disagree, but I've done side-by-side comparisons and Chrome beats them all hands down.
2. Google Maps: sure MapQuest and others came first...but Google made maps so much better that even now it's a bit hard find a maps site that can beat it. Bing is nice too, but Google maps was the first to really innovate maps. Including street-view was way ahead of it's time...even though it seemed sort of a "duh" idea to most people...Google made it happen.
3. Cross-platform syncing in Google Chrome: This I haven't seen any equal too. As long as I have a Chrome Browser, I have my bookmarks, my saved searches and passwords, my browser history...and now we have seen syncing opened tabs from other devices syncing cross-platforms. Many argue it's too much big-brother looming over you, but if you have nothing to hide, it's really convenient. Personally, the bookmark sync is the by far the best feature any web browser has done in a long time. Granted I know nothing about Firefox because it's too complicated and the interface is way too busy.
4. Google Calendar: Granted I haven't used iCal much...and I think that's more of an OS thing and not a Web thing...but i've yet to see a web-based calendar that works better, syncs cross-platforms better, is easier to use than Google Calendar. I sync it to my iPhone and it works very seamlessly.
5. Google Docs: Granted I don't use this too often (if at all)...but i think it's ideas like this that really paved the way for iCloud.
What Google needs to do to really compete...quit the dart game. Jobs was quoted in his Bio that he agrees with all of you that say Google just throws things out there to see if they stick. If I remember correctly, SJ said they need to come up with a strategy and focus on how to accomplish that strategy. I listened to an NPR episode that was discussing that very topic. It was explained that Google does this because they have the resources to do it. They treat a lot of this stuff like a "skunk works" of ideas and they don't really care if it fails because they have the money to do it. Some might say that's stupid, but I'm sure that's how a lot of the good things Google has accomplished came to be.
I for one agree 100% with SJ. I would also add to that by saying what I've always said about Google. They have some really great stuff out there, but they don't market it well. Apple has always had the best marketing for their products hands down. These "keynotes" they have when releasing a new product are the best demo's i've ever seen. After seeing a keynote, you pretty much know how to operate their products...granted a LOT of that has to do with the fact that Apple products are so easy to use that these simple keynotes are all you need to demo it. But, I'd argue that Google is very close to this strategy as well, they just don't market themselves the way Apple does. They really need a focus. Throwing darts at the wall gets you in the door, but then you have to really sell yourself to get the job done.
When Google first launched Chrome OS. I watched the Keynote and was really excited about it. That demo was as close as Google ever got to being like Apple...in a good way. But then the iPad came and it should have been dead back then. I'm not sure why they didn't just pull the plug and merge that team with the Android team...try to make a better mobile OS but I don't work at Google.
Regardless I think Google's at a point now where they need to gain better focus...come up with a long-term strategy and implement it if they want to stick around another 12 years.