That's what happens when you encourage your employees to build things on their own. You have more failures than successes as far as products go.
Personally, I like that Google has these pet projects that they try out for a while and see if they work. Not everything you do is going to be successful.
I'll take my gmail/maps/apps/reader and be happy. And who knows, maybe in the near future they will come out with something new that I can't live without.