I've been into research about search engine. While google algorithm is the best at the present, its business model( cost-per-click or AdWords) on which the whole business relies can be taken away by a business model pattern to Web 2.0 concept, Meaning, understanding the need of users and provide that needs and you have a loyal community of users which you can monetized the eyeballs for ads.
The following is based on my observation as I used google search:
1. While I'm using google in one country, the ads shown is from U.S. If I'm looking for a product locally, that ads has no relevance to me. For the point of view of technology, this will be hard to address because it will require a huge amount of computer processing to filter this locally unless google will maintain a server per country and analyze the same per country.
2. There is still a gap in the user's experience between desktop interface and web interface. The availability of Ajax tries to close the gap but still not enough to bring the same user's experience. On the other hand, Desktop Program can now be updated online. Meaning the advantages of Web over desktop in terms of updated information has improved. The only issue is how frequent the desktop users updates their software.
3. It will be hard for the time being to resolve the fraud-per-click issues. If a company provides a flat rate of ads and provides a solution to the issues I mentioned in 1 & 2 namely, localized search for product and bringing the desktop interface experience to the users I believe it will gain a wide acceptance to business users, who at the business point of view, the real source of income for Google.
In summary, if there is software or web that is directed towards business or localized product search, Google may end up as a search engine to find a general information only and the Adwords model may be at risks.
I have designed a software that address the above issues via Web 2.0 concept. I'm looking for computer engineers who have been into search technology to improve my prototype. Contact: marionito_c_marquez@hotmail.com

Weakness on Google search, a user observation
supagu
Does that means George Bush is closely related to HiIlery Clinton "Roll Eyes"
To TP, I think Google hasn't penetrate, that's say, Asia. I haven't keep track of Asia stuff, but I am pretty sure Google is nowhere near as top3 search engine in Asia. So, there is no need to make a move yet. And maybe your area is the same condition. And obviously their adWorld is not internationalized yet, it is probably all USA ads.
bpeikes
gregaug