Reducing your dependency on Google's support for open standards then becomes prudent.
Personally I'm sticking with a number of Google services, but I'm also taking precautions (backing up my data; my primary address is on my own domain so I can move away from Gmail easily if I want to (don't think they'd close it down, but they certainly can - and have - made changes that I find detrimental; I only stick with Gmail now because of a number of tweaks using Minimalist, for example)
It's not so much that Google has become horrible, but that they've taken a number of steps to be "less good" than what a lot of people have come to expect and depend on. They're on their way to being "just another company" instead of anything special.
If you are referring to the original article, the article makes it fairly obvious that the GReader event was the proverbial last straw, not the main motivator.
As for the second paragraph: My point is that once you have a certain amount of dominance, and a certain amount of traction in the market (of the kind that it's hard to switch from, such as Gmail or Reader or Docs/Drive), it's no longer important prioritize openness or sharing or standards compliance. Those things don't matter in the short run to your user base, many of whom are loyal by necessity (switching is hard) or inertia (don't really care, it's the default choice), or who just don't know or care. It doesn't really matter to your bottom line if you piss of a minor percentage (eg., Reader, or the recent post about Google not providing any kind of support), and the competition is so small that they don't matter much either.
I really don't understand your angle with the second paragraph though. It's just the kind of stuff that's going to make this all devolve into a battle of words about who the best/worst/most evil/most creative/most underdog/most overvalued/undervalued/deserving/undeserving companies are. Frankly a generalization like that without any specifics or context is a fanboy thing to say. If you're trying to tell me that Google is a stagnating company doing more net harm than good, all I think it's worth to say is that I think you're terribly wrong, and I disagree.