Google will eat the world. Whether you were selling an RSS client or giving away a social network, the fear was that Google could take your whole market sector.
How? Google search is the way customers find you, initially and every time they want to log in. If they want to compet, all the customers already have google accounts and they're already logged in. Google has useful customer data: "you are in a restaurant now and often visit yelp, do you want to write a review?"
Lean on 2 or 3 of these advantages, and Google can have a yelp-killer sketched out in an afternoon and built in a quarter.
In reality, Google didn't really eat everything. The web was just too big. They also sucked at some stuff like new communication or social network paradigms (wave, plus hangouts). But, Google's bigger now. Theyve eaten most of the big dishes. Yelp might still be too small a snack, but... the point about dominance is true. Google have a lot of power. If they want into some web sector, they can just power through the marketing & chicken-egg problems that kill 92.6% of the competition.
At what point is it too much? Google wants to classify all the world's information—doesn't seem like there are many markets it wouldn't enter. Is every business just living on borrowed time because the Eye of Google hasn't swung toward them yet?