Relevant: http://www.theverge.com/2016/2/24/11111000/google-says-9to5g...

(note the update)

That is not a particularly relevant story. The use of a trademark can be justified under fair use in the context of news reporting and commentary, e.g. "macrumors.com" or "applesucks.com", but even that is not cut-and-dry: http://www.dmlp.org/legal-guide/using-trademarks-others

You have a much more difficult defense in that you've produced something that does what the layperson associates Google with: search. Even worse, you are using Google's name and logo. It's been awhile since I've read through Google's TOS, but generally, TOS are very explicit about not using their trademark name or logo in such a way that implies endorsement.

You make good points, and I appreciate your point of view.