Google does a lot more than that. For example copy and paste works if you select some text and copy it out. That's non trivial.
Plus, it will maintain the fidelity of the document -- meaning that even PDFs with complicated layouts will be rendered properly in HTML. No trivial task.
It's a great technical challenge, but will users notice the difference?
Once this is live, Scribd will gain at least myself as a user, and I suspect many more.
(Nesting is too deep to reply to axod, so: the fact that Google is doing this should be reason enough. Scribd exists as a place to publish material. That material should be reachable by as many users as they can manage.)
Works fine for me :/
Especially if your users are disabled.