probably a good thing for everyone that they did not. Steve Jobs is way to much of a control freak to handle the more open workings of Google. If jobs was running google I would say that it is safe to say they would of crashed and burned.
Jobs would never allow his engineers to spend 20% of their time on side projects.
Some of the things from google we love to use were all side projects from their engineers. Google Maps I believe was one. Gmail I know has several in it.
Google Earth started out as a random side project.
Wave was another. Street view I know was one. Jobs would never of allowed any of that to happen.