The writing has been on the wall for a long time.
Companies need to innovate to survive and thrive.
For many years this has not need a strong suit for Google and the release of +1 really confirms it. Instead of relinquishing the current social title to other companies better suited (and more innovated to handle it) they try to compete it in.
They would do much better if they would embrace and develop relationships with innovators, support innovation and build a culture of innovation as opposed to one of wealth.