Google is doing what Real Names tried to do. Just this morning I heard an NPR "sponsor spot" where the text went "For more information call 1-800-FOOBARZ or Google FOOBARZ". Everyone knows google; and it's easier to type the name there than trying to get the URL right. Heck, I use google instead of the location bar all the time.
Did people ever worry that Yahoo was too powerful? I can certainly see how you can worry that Google is getting too important. What would you use if you couldn't get to Google? Bookmarks again? I didn't think so.