Well, I definitely feel its not hard to picture Google looking at WriteWith and realizing that there is an opportunity there for them to leverage from their existing systems and just establish a connection between GoogleDocs and Blogger.

The incremental effort required to bridge the gap, seems minuscule, especially on the Google scale. One of the possible Google efforts would be, WriteWith getting an irresistible offer from Google. I am sure the founders won't be complaining then!

I totally agree. This is a classic example of an Innovator's Dilemma incremental improvement (i.e. what big slow companies are really good at)

http://www.amazon.com/Innovators-Dilemma-Revolutionary-Business-Essentials/dp/0060521996/ref=pd_bbs_1/102-9893482-5829762?ie=UTF8&s=books&qid=1176413849&sr=8-1

Nice!! The book looks interesting! Thanks for the recommendation!!

Oh, that's a great book. Listen to a lecture he gave here:

http://www.itconversations.com/shows/detail135.html