Agreed. Also, Google's weakness that a startup can exploit is their almost non-existent Customer Service. Google wants to scale massively from day one, so manual, 1-on-1 support can never be part of the plan (unless they go meta and create a Helpouts for Helpouts, probable actually). If Google entered my space, I'd just up the customer hand-holding game and start posting testimonials about it.

Kevin Hale of Wufoo comes to mind: http://www.youtube.com/watch?v=tBWFfxE2658