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This is pretty contradictory... Blogger and Picasa were two "clean" applications that are being retired. They focused on one thing and did it right. Yet they weren't succesful in the longterm. I don't think Google is trying to be anything and everything, it's just building the framework to make it possible for other companies and programmers to add their specific and "clean" apps. This will create a constant expansion and evolution with the needs of the users. And I'm pretty sure they will make it the open source concept that Android is, and Android seems to work wonders because of it.
I for one welcome to consolidated approach, where one thing works with the next, as long as they don't also take the propriatery approach like Apple.