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As the article makes it clear there have been plenty - well I can only think of google maps and ok maybe Android whatever that is - successful productsI already know a couple of companies with paid subscriptions to Google Apps, which IMHO is an awesome service.
If I were to keep only one or two services the Web has to offer me I would keep Google's Apps (+ Wikipedia).
I installed the free version on 3 domains I have ... on your own domain you get an email service with the awesome Gmail interface (many people take that for granted nowadays, not remembering how much Hotmail or Yahoo's Mail sucked and still suck). Before this I can't count the number of times the email provided by my ISP was down.
Calendar is also super-useful ... coupled with Gmail it can replace Microsoft Exchange in small to medium companies and doesn't have all the suck. I also use it for my personal affairs, and one feature I like besides the overall usability is that they even send free notifications by SMS messages (in Europe) for my appointments.
Google Docs is also cool ... it's like a wiki with which you can collaborate on docs / keep notes, but with an interface for normal people. Most of the time that's all you need, and it can also work with the Word format.
Coupled with App Engine ... you've got everything you need in one little package.
And for more than that, Google Apps even has a market-place ... http://www.google.com/enterprise/marketplace/
I'm actually intrigued they couldn't create a competitor to Facebook when they've got all this infrastructure ... they definitely shouldn't give up on Buzz and just improve it incrementally.