I don't invest in individual stocks but being a techie I can't help liking these types of discussions.
I mostly agree with twaddle. IMO Google cannot and won't try to enter the infrastructure market by providing proprietory consumer hardware and/or free universal wi-fi limited to or otherwise pushing their online apps. My reasoning:
1) Legal issues. Local ISPs will fight this just like they fight various municipalities' plans to provide free wi-fi "mesh". Also limiting internet access to only Google-approved sites seems at least as monopolistic as Microsoft's OS alleged "preference" for Microsoft products.
2) Net neutrality. I happen to think net neutrality is mostly a bogus cause but Google has been heavily campaigning for it for years and their entering the infrastructure market and cutting out non-Google sites/apps would be a complete 180 on the issue.
3) Bias against close/proprietory systems. This is something only techies will likely to fully appreciate but a techie-driven company with as deep Linux roots as Google is very unlikely to suddenly come out with a closed system. If anything, Google goes out of its way to provide easy access and integration to their online apps to outside parties (see Google APIs), even if there is no immediate obvious benefit to Google.
4) Cost of deployment/maintenance. Self-explanatory.
In general this strategy seems much more Microsoft-y than Google-y. Microsoft could provide a free wi-fi mesh that locks people into MSN and other Microsoft-approved sites and hosted versions of Office and whatever other apps for a small fee and/or targeted advertising. That would certainly be a huge blow to Google. And Microsoft actually has the money to pull it off. (I'm not saying they will or should, of course).
Google certainly may provide free wi-fi in some cities (San Fran) as part of their general effort to maintain and improve their good public image. But it would not be nationwide, would not include proprietory consumer hardware, and would not limit the sites that can be accessed.
What is likely to happen IMO as far as Google's online apps is that Google continues to improve their online apps, continue to improve/popularize their client-hosted software like the toolbar, and integrate the two more and more closely giving the user more and more incentive to start using them over Microsoft Office.
And of course Google will continue carrying on their hundreds of R&D projects which for them is like financing hundreds of startups. Most will amount to nothing but a few gems will pay off big like keyword-based ads did since their intro in, I think, 2000. Basically a sophisticated version of the 1000 monkeys on 1000 typewriters