Just think of the possibilities that Google is trying to capture from this service. I really sometime doubt if Google really monetize the data. But yes I agree Google cannot grow so big without monetizing data.
Yeah I'm also a bit confused here. What service are you actually referring to? I think maybe you should explain a bit more.
It just a possibility but not become true yet. Google is preparing to join web hosting business in a soon without a doubt. If cellphone company like T-Mobile can get themselves joining to web hosting business, so why not Google. I have started thinking about this when they did count page load time for ranking factor. We all also know the Google infrastructure and technology is best anyway. I bet when Google launch the service, most webmasters will grab it like it is free regardless the price. Do you think get your site hosted with Google hosting (in the future) will get a better ranking? I do not think so but I also bet many webmasters do.