One of the main reasons I personally wouldn't choose Google over Amazon no matter how much they lower the price is due to the lack of a solid customer support. God forbid if something goes wrong, not only will I risk losing the Cloud account but also everything else linked to them including Adsense.
Also, Google has a history shutting down unviable services and as these competitive price cuts continues, it gets more risky to keep betting on Google.
A history shutting down unviable services is a glass half full. On the upside, it means they won't permit a service to limp on, viewing its customers as burdens and providing terrible service in the hopes they go away.
In either of those scenarios, migration off their services would become necessary. But if they keep it limping instead of cutting it off, that I think facilitates safer more cautious migration (if for no other reason, because it would give you more time to do so). In that respect, keeping the service limping would probably present the superior customer service experience.
This is a very good point and enough for me to know I will not be using Google for cloud hosting...ever.
They shut down AdSense and AdWords accounts constantly with no recourse or explanation and customer support is completely non-existant. Giving them control over my hosting as well is far more power than they've proven worthy of having over my business.
People do choose their tablet over price - and the race-to-the-bottom is inhabited by two big players - Amazon and Google.
Both of their lowest-end devices are limited to 8GB physical (6GB or less after OS) memory, so cloud storage is a key pricing issue for folks comparing a Kindle Fire vs. Nexus 7 (or Nexus 4).
The battle for the non-iPad tablet space looks like it's heating up fast... what's amusing is that pure hardware manufacturers like Samsung or Acer are nowhere to be found because iPad-style tablets require an ecosystem and a) adequate on-board storage and/or b) cloud storage.