Google should not compete with FB. It's going to be pointless...they should channel their energy and resources to something else.
I have to take issue with this. Google, historically, is not good at entering markets. If you look at the history of Big G, they did extremely well building their search engine, and they've done nothing in-house since. Even Adwords -- which is their core business -- was largely acquired technology from buying other companies. YouTube was acquired and took forever to turn profitable. About the only other innovations Google controls that are of any merit are Google Maps and Blogspot. Judging by Google's continuing efforts to monetize Maps, it's a reasonable guess that it may not be all that profitable. And Blogspot is largely intended to provide a platform for serving Adsense ads. Now, compare all that to wreckage of so many Google projects. Think Google Wave. Google Docs. Google Video. Google Answers. Knol (ouch, super suck). I don't see Google gaining any traction against a much better opponent like Facebook.
I prefer, no competition is the better way to handle our own media sites. As both are completey different, one being a search engine, the other is a media networking site.
Google are good for KeyWord's at top of your website which help's to get your website on the Google Search