So scary it could be true. :) There is a possibility (after reading incrediBILL's post on the Larry Page thread) that Google has attracted the institutionalised mindset of the type that would bother getting a PhD rather than the innovator/inventor type mindset and this Panda update is the result.
I don't know yet if Google has jumped the shark with the Panda update but I do think that Bing and others have a marvellous opportunity to take market share away from Google. Google has committed the cardinal sin of search engines - it has pissed off the webmasters. This update may see webmasters moving towards optimising for Bing rather than Google and may have turned largely passive webmasters into active opponents.