reno said:this is one of those news items that will probably slip under the radar, but it actually could be quite significant in the long term. to me, it means more potential collaboration and joint ventures between Google and Apple. I see it as two entities that have become significant powers in the tech industry joining up to better technology overall and to also join the battle against the evil Micro$oft empire. i think we will see some good out of this.
While I don't see this as a formal "partnership" between the companies, I do see this as a step in the right direction. Perhaps more Google apps will be pushed in the Mac OS direction (I'm looking at you, Picasa!). I hope that .Mac gets a price cut (possibly back to free?) and gets Apple-skinned versions of the Google web apps. Google has a lot of interesting ideas floating around, but not many of them have the polish of an Apple app.
Google video search would, and should stay a separate system, but their public offerings might be integrated into the iTunes storefront (like Podcasts and Audiobooks are, with a separate set of pages from the Music Store itself). I don't anticipate Writely being built into Pages or Google Spreadsheets becoming the long-rumored 'Numbers'. Google Page Creator might not be such a bad addition to iWeb/.Mac if it got a facelift.
Overall, I can only see this move benefitting both Apple and Google. When Steve Jobs joins the Google Board, then we'll know something big is cooking. Right now, however, the future is a little fuzzy. Bright, but fuzzy nonetheless.