Neat thought - but I think one of the comments there nails it: "Facebook is aiming squarely for Google’s turf (ads, traffic), and will do so regardless of Google’s success or failure in the social sphere." (Robby Grossman, http://phonons.wordpress.com/2010/10/25/is-google-deliberate... )

It's definitely a big weakness of the argument, which is just meant semi-serious anyway. I wrote a reply to the comment nonetheless. The aim of the strategy might be to create just that competition between Facebook and Apple, which is absent right now.

I think Google or anyone else should man up and "invent" something that can compete on a quality level with Facebook.

Facebook is like Hercules, very strong, but not immune to death, still a mortal. In other words Facebook did not max out the capacity in social networking.

Something like Diaspora may be a step forward, I think it's kind of creepy for Facebook to know all my social stuff.(The main reason I don't do much on Facebook).

TL;DR: There is still a chance to do better than Facebook.