Google released an SEO "Report Card" and admits they failed at SEO for their product pages. Here is the report card: http://www.google.com/webmasters/docs/google-seo-report-card.pdf
There is actually some invaluable information in that report to be had. Pay attention to the recommendations they make and apply these to your own site.
Lolz. they are not failed they just criticize them selves that not every search engines is perfect and every website needs improvement to get their best. I like the way Google shows their own products and tell others to improve them selves also. You just have to admit that Google is far better then any other search engines today. I think Google is now focused more on On Page Optimization (Including META TAGS)
They failed their users in the case of their product search. They want to improve their SEO (Meta Data, H tags, etc.) for the user. This is how everyone should do SEO...put the user first.