Even worse than undermining expectations about the price of software, since google's general use apps (gmail, docs, etc.) are Service as a Software Substitute (SaaSS[1]), Google is also undermining the basic concept of buying a copy of software. Even as an intangible good, it's easy to understand the value of owning a copy that you get to keep and use on your own terms. When the same software is only available as a service, availability issues and other risks that outside your control make the service less valuable.

Why should someone want to buy software when most of the software they see and use regularly are unreliable services?

[1] https://www.gnu.org/philosophy/who-does-that-server-really-s...