It's interesting that he downplayed the idea that Google is competing with Apple and Facebook. Does this show that most of the Google/Apple competition is fabricated by the respective fanboys?
Why would he say the opposite, that they are fiercely competing with Apple and Facebook?
If there aren't many reasons, then this statement is akin to the commonplace that someone stepped down to spend more time with his family. No doubt there are people who have genuinely stepped down for that reason, but nevertheless...
Perhaps it's because Google is behind in the markets that they're competing with Apple and Facebook in, mobile and social, respectively.
There's no doubt there's competition, they're just passive aggressive about it for the most part. Jobs was quoted as saying that Google wants to kill the iPhone -- that's pretty convincing to me.
I don't think we'll see the real competition between Google and Facebook until Google unveils their social network that's been rumored.