It looks to me that Google is aiming to become the world's biggest affiliate marketer, I understand they already have working (on trial?) PPA in the US, so will possibly use this to offer the Checkout merchants a low conversion percentage charge in addition or instead of adwords PPC.
The more merchants that sign up for Checkout, the sooner they can make it a reality, merchants with a large order flow via Google will not want to jeopardise their business by refusing Google PPA (sale) and the merchants that stay away from Checkout will have an increasingly difficult time.
There is no doubt that Google can make or break any but the biggest and most established merchant, whether we like to face that fact or not. The time when any competition could stand up to Google search is long past.
We are not implementing Google Checkout at present. the merchants in our sector that have adopted it are not really competition to us; until our real competitors use Google Checkout, we will sit on the fence. I think that GC would be profitable for us but I'm very concerned about the Big Google aspect.
Incidentally, Paypal is allegedly offering all sorts of incentives for merchants not to take up Google Checkout, hopefully they'll throw some my way!!
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pretty much makes it harder for any competition 

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