LinkedIn definitely has very rich resume data.
Most of the time people don't want to post this on LinkedIn as its too public of a space to go about bragging of your achievements at employer X. With this system, Google basically has a window into this more specific information.
In non-technical fields, taking candidates through a face-to-face interview tends to be the best way of gauging grit, creativity, motivation, fit/compatibility, etc. That's especially true if the job specs are still fluid. In that case, a face-to-face interview lets both sides play around with the job description a bit.
Google is supremely good at coming up with engineering solution to engineering problems, and its decision to build an applicant tracking system is encouraging. But Google also is a bit prone to taking the same approach, no matter what. If we're talking about the full sweep of candidate assessment, that isn't an engineering problem.
If all of the important information doesn't fit on one page, in a way that is nicely organized and looks good, then it is not a resume.
Nobody should ever print out their linkedin profile and then hand it to a recruiter.
Seems to work for a lot of people.
Yes, you CAN do it, and some people indeed do, but my opinion is that this is a poor idea because the service isn't optimized for it.