I don't know. Google is very good at making well-programmed apps, but they don't make them enjoyable to use. They're usually fairly cluttered visually if not in terms of features, and their stuff is minimal to a fault.

Campfire, I think, is still a much better app than Google Talk, partly because it gives the chat so much space to breathe.

And I don't think all PROGRAMMERS care about that, but a significant number of DESIGNERS do.

From talking with some of the AppEngine developers, my impression is that they are trying to get developers to write a bunch of free/cheap applications on Google AppEngine that they can then use to persuade people to sign up for Google Apps for Your Domain. Whatever others don't write (well enough) they will crank out themselves.

Besides that, they already have products that implement large parts of 37Signals's applications' functionality. It is just a matter of them packaging it all up into something more usable and then marketing it. A large part of 37Signals's success is due to marketing; Without Signal vs. Noise nobody would know about them.

huddlechat=campfire and was made on Google App Engine in like a week or something.

37signals IS successful because their stuff is minimal, which, again, is why Google would eat their lunch.

But copying something doesn't mean you can come up with the next thing.

See Gmail. Google will do it better. Moreover, the integration with Google Apps/Docs automatically increases its versatility for someone already using Google Apps

37 signals keeps on cranking out new minimal apps though...

I disagree. Campfire is an ok-ish webapp, but it doesn't seem to be in development from what I've seen, or growing.

It sort of fills the minimum requirements for webchat.

I think if google decided to put some effort into chat they could create something pretty cool, hooked into all their other systems etc.

Huddlechat worked pretty well, and it was frankly amazing they took it down IMHO.

... 37 Signals is eating 37 Signals' lunch for now.

Campfire is not 37Signals money application. You're thinking of Basecamp. I'm surprised if 37Signals gives a shit about Huddlechat.

"we're flattered Google thinks Campfire is a great product, we're just disappointed that they stooped so low to basically copy it feature for feature, layout for layout". He went on to say that "we thought that would be beneath Google, but maybe its time to reevaluate what they stand for."

We've established that they were willing to be snide about it, but not that it was in any way threatening to them. Campfire is, by far, their simplest application.

jasonfried would be welcome to respond here. while they're busy writing marketing blogs, because of the simplicity, 37signals' software is defensible from a startup's point of view, but doesn't hold a candle to Google if they launched something, a la HuddleChat.