Yes, one of the problems here is that (contrary to the positive publicity they generate) Google does not appear to care who they damage with their juggernaut. There is no doubt that newspaper sales have been damaged by online content.
While I am not his number one fan I can understand why Murdoch is upset. His whole business in under threat from online content. How would Google feel if they were being similarly threatened?
We should not lose sight of the fact that Google tends to do what they want and hang the consequences. For example how many businesses have they closed down by buying up services then offering them for free? How much concern have they expressed for the people whose livelihoods were ruined by their actions?
They are becoming too powerful IMHO. In this situation any valid challenges to this power are to be commended.