Some more discussion is available on it here: http://blogoscoped.com/archive/2009-01-18-n35.html
I guess I'd be surprised with Google's move to "focus" their efforts if they released something like this.
Google is apparently not so rich and powerful that they can't shut down an (!) online notepad.
Some more discussion is available on it here: http://blogoscoped.com/archive/2009-01-18-n35.html