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Have you looked at gmail lately? Maybe you've been carried along with it, but it is getting as overloaded with gadgety features as any other application.
Sorry, google is a cool, innovative company, but they're not magic, and they are as susceptible as "the devil is in the accumulating details" as any one else.
There is a startling lack of integration between the search and user functions in google search, news, orkut, gmail, etc that shows they really don't have any central integration that would make them special. They're just trying stuff. Stock's going up though.
I'm thankful for their approach though, they are absolutely cool people, and hope it can influence other dumb "sell out rather than try something thoughtful" approaches that exist.