Let me see, the film has caused a violent backlash and Google is wanting to block people from seeing in areas that further cause a violent backlash? I'm not at all concerned about the implications. As stated many times, it's their service, if Al Qaeda want's to spread it they can make VHS (VCD?) copies or whatever and do so. The film maker who is certainly enjoying the violent response (that he aimed for) is more than welcome to ship copies anywhere in the world he wants.
Spare me the false logic arguments of "what's next?". Google does not have to be the hosting provider of hate speech if it doesn't want to. And they certainly have the right to be selective on what airs where. I see it as good "citizenship" in a way. They already can remove my videos calling for the mass murder of all Slashdot readers - just because, never mind it's not even constitutionally protected speech.
I'm pretty sure by looking back now at Google, Twitter and Facebook they didn't discourage spreading information that lead to violent revolutions (Wikileaks still shows up in searches for example) in these countries when the causes were noble (i.e. toppling un-wanted and brutal/corrupt leaders). The track record thus far has shown they self censor when appropriate.
I get slippery slopes and all that - and I get that you don't have the right to not be offended... but today money is speech, corporations are people and hate speech is lauded over violent reactions. Even shooting and killing your own citizens to defend an embassy of another country isn't enough to satisfy those who want to further fan the flames of hate. In what world is is okay to continue answering hate speech with more hate speech and then cry foul when it comes down to blows? There is less civility in civilization every day. What happened to "mutual respect"? Why sabotage years of peace just because you can?
For goodness sake, do you think the people who died want the video spread even more? Don't you think their families hold both parties accountable (of course the killers more so - but still)?