Often, there is additional expense to manufacture in the US. However, my experience working at a now-defunct US contract manufacturer points to other factors than labor costs. First, any new project required "lawyering up" when a newer technology was involved. The patent maze is a very costly to pass through in the US, and that cost cannot be blamed on higher labor costs. Also, I take issue with the idea that "Made in the USA" means lower quality. Again, in my experience, companies would bring their new products ideas to us. We would develop then business and manufacturing processes necessary to produce a reliable and high quality product. Then, those companies (our customers) would take that process either South of the Border or to SE Asia and start churning out product, but make no change or improvements to the initial process... so over time, QA would suffer. The fall-off rate (that is bad items vs good items) would be very small when manufactured here in the US, but inevitably, it would increase dramatically once moved out of the country. Again, that cannot be blamed on the US workforce.
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I've found Microsoft's Live Mesh to be an idea in search of an application... whereas Google's product seems more the reverse, an application in search of an idea. I prefer the later. But also, I have no idea what Live Mesh is for. I don't know what the thing is supposed to do.