lesson in Michael Porter
So any MBA-types from the past 20 years will know the name Michael Porter - with his analysis of market conditions.
Google comes up against many of the "five forces" that Porter outlined. I would say that "power of the channel" may have been the one that did them in. It isn't clear why Google would want to compete with some of its largest customers (the phone vendors), and why they'd also attempt a run at the operators. Not going to get too far when you alienate such a big swath of your market.
They'll probably just issue some statement "that the world just isn't ready for this way of doing business". They failed on quite a few levels for more than a couple reasons. But potentially even more is that Google has been made aware that they are not invincible.