I disagree with their fundamental premise that Google is "the world's last digital library". Google's demonstration that such a thing is actually possible removes one barrier to entry. They have also set a precedent which reduces the negotiation required for future projects.
The fact that Google has done a poor job (so far) on the metadata is something that's worth highlighting - but it's not a reason to curse the whole project. This is fixable, possibly even a transient issue. GBS is an entirely new resource, which scholars have not had before; if they find it unsuitable for scholarly research, perhaps they could continue to use their existing tools or work to improve it, rather than slam the effort as "A Disaster For Scholars". "A Useful Tool Which Still Needs Improvement" might not be as snappy but the The Chronicle Of Higher Education doesn't look like the Daily Mail either.