Google's "New Coke" moment when they really lost the plot was the decision to kill the beloved Google Reader (thereby making RSS feeds much less useful to anyone who wanted to browse them without installing an app), in order to attempt to foist Google+ on the world.
When they had Orkut and Google Reader and Android etc. all doing their own things, it was easy for every division to take deserved pride in not compromising for the AdWords / DoubleClick / AdMob juggernaut of attracting eyeballs.