Why not? The only thing that Google really does better than anyone else is search (and maybe free machine translation). For everything else, there's a better or at least equivalent option.
Gmail is actually doing quite a good job as well. What other mail provider does probably BCC every mail you receive and send to the NSA cloud for safekeeping and backup?
Selling bitcoin - or ANYTHING ELSE - at an auction in exchange for US dollars does not set ANY kind of precedent establishing that bitcoin - or ANYTHING ELSE - is now legal tender. In fact, it establishes the opposite.
You're right. It would make bitcoin legal tender only if you could pay for the auctioned bitcoins with... bitcoins. But then again, that would be pretty pointless, wouldn't it?