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If its not okay to create software that will use google's website to run searches, then will it be okay to do so using whatever API via the tool that Google provided to be used the way they want you to (just like their website)?!?!
Does anyone think that other 3rd Party Search API's will be prompted by this?
With web results, your queries use their server time and bandwidth and are lost ad revenues. With local results, they don't lose anything.
True if the results are local -- but the trend is to have combined results whether from your PC or WWW, so it would not be very wise to just allow for API to return results from PC, but not WWW? Conversely if you return results from WWW then you have a way to query G's servers..... something they had (as an API) for a long time, but they were not keen to provide man on a street with reasonably priced license - they did not even bother answering my questions on what the price might be!