Let me clarify what I meant to put it into better context. I watched the whole thing from end to end as well.
The section I think we're discussing was when he was being questioned about injecting Googles own products (like local, places, maps, product search, etc) in front of others that are algorithmically decided.
After they discussed the actual "Product" placement, they also talked about maps being put in. At which point Schmidt mentioned universal search and that by using the Maps and Google Places features, the algorithm allowed smaller businesses the ability to rank better against national brands.
I am not a google bell-ringer in any way, but that was my own take on the discussion... like if someone was searching for "cars" or "refrigerators", Google injected a mix off local small businesses into the first page of serps (which we all know as Google Places) allowing them higher visibility.
Anyhow - I would have to watch the first hour again to see for sure, but that's what I took away from it.