It's intersting that you highlight GMAIL as the point where Google became scary. If anthing, GMAIL is another example of how Google's efforts outside of Search have largely failed...at least by the standard they set with Search. I used tried to find the latest marketshare numbers using Google but could't find anything current :) but as of the middle of last year they had about 2% of the Web mail market. Hmmm... Huge success?
I think their only real succcess outside of Search is mapping but even there they're trailing Microsoft (local.live.com) in innovation. Check out the 45 degree angle photos on local.live.com if you don't believe me.