It's one guy who happens to work for Google, rather than the whole company.
Search also puts a lot of effort into identifying duplicated content to punish content farms. I've heard they're making progress on detecting algorithmically spun articles too (http://en.wikipedia.org/wiki/Article_spinning).
Oh, and they have it for images. Here's the search result for the one they used: https://www.google.com/search?tbs=sbi:AMhZZivFQlmjC8rcxWC0MZ...
So yes, it'd be trivial for them to do so.