What it’s not willing to compromise is the security of the cloud, on which its entire business rests.
~ Nicholas Carr
Carr is spot on, again.
Check the full article here: Nicholas Carr: Rough Type
UPDATE 1/17
Another fine read on the topic from Forbes. Different take. Google has been beat by Baidu. This incident put the issue over the top.
Article here Forbes: Why Google Is Quitting China