I think I like the company-line answer on whether it would be fair for Microsoft to bundle search with the desktop? “We don’t have an opinion on that. Search is a very big space.”
I think these guys are very smart about the nature of competition. It isn’t about monopolies or leveraged advantages. It’s about understanding your customers, the jobs they want to get done, and coming up with better solutions. Google will compete with Microsoft just fine, I predict, regardless of what Microsoft does. I don’t expect to see Google dragging Bill Gates into court.
One other thought: I don’t understand all of this hand wringing about Gmail. It’s ain’t a privacy issue. If you sign up for a service to that scans your mail, you’ve knowingly surrendered that corner of your private world. It’s you’re choice, and it’s none of the damn business of privacy advocates if you make that choice. This is about the biggest non-controversy on the Web since Netscape introduced the FONT tag.
If that’s still not enough Google for you, here’s more Google news from Google News.