Assuming this article's suppositions are correct (that Google must become more social to continue growing), Google is showing a lot of cojones. Most businesses won't cannibalize their core cash-cow, even when they know the future is limited (see Kodak with digital cameras and every hard disk manufacturer :). There is no question it is a gamble; but if the other option is an eventual sunset (and I wouldn't be surprised if Larry thought of it that way), it is better to make the bet while you are on top than when you are scratching for survival.
I don't understand. Can you please explain how they are "cannibalizing their core cash-cow"? Can you please explain what they are gambling or betting on? They aren't getting rid of search as we know it. They are just adding additional features. They haven't taken anything away.