Didn't read it all. However, I think Google's goal would be to deliver everybody the best possible search result. So they would rate this as failure internally, because people had been looking for Facebook, not ReadWriteWhatever. That's not to say Google has the responsibility to do so, I wouldn't blame them.
Yeah, I can see that.
Just had some more thoughts on the topic and it wound up being an (admittedly) long post. This topic might be more or less discussed to death, by now.