[crazychrome]

So according to your logic, Microsoft in the 90s was not in the "unique position"? All your points about user engagements, keeping them around, intrinsic value, applied to Microsoft perfectly.

The fact is, Google occupies a unique position under the framework of browser + search engine. Their inability to expand meaningfully to other web segments (except gmail) proves:

1) they are idiots. (highly unlikely) OR

2) the theory of "user engagement" does NOT work in case of Google Inc. Therefore, mining of users' data serves purely for the business interest, it has no value added to users. And yes, Google Search's model is fundamentally different than ugc-centric services (e.g. fb).