Google has replaced Microsoft as the company that Silicon Valley companies love to hate because it enters nascent markets and dominates them.We at Findory have experienced this firsthand. I have been surprised to hear VCs tell us that they wouldn't fund Findory because it eventually might compete against Google.
But I think Dare overstates things by casting Google as the new bogeyman. The rapid rate of Web 2.0 innovation, some of which is coming from the search giants, creates uncertainty and risk. Some fear that uncertainty, some embrace it.
See also my previous posts, "Yahoo and being underfoot" and "Sucking up the talent".