This is much better news than just another Facebook clone. I don't mind some social networking aspects mixed into their current offerings. What I don't want is another Myspace/FB/Twitter BS waste of time. Social networks are inherently bad, its just the implementations that have been so useless.
Google is going to take over the world. They know how to play the game very very well. Everything they do has a purpose "advertising" and the best part about it is they can offer there products completely free and who says no to free?