I've been curious to see what they do with a music service, but this doesn't sound like something compelling enough for even an admitted Google fanboy like me to jump over to.

At this point, I can't see myself going back to a pay-per-track music service. I'm really loving the subscription model, and have saved quite a bit of money with it.

With Google, I'd have to pay $25/year on top of paying for the tracks themselves? I already pay for extra storage at Google for GMail and Picasa Web Albums, so why should I have to pay for this too?

I think there's a lot we still don't know, so we'll have to see. But they have a long road ahead of them. I do agree that competition is good, but I would have thought Amazon had it in them to compete with iTunes, and prices have only gone up on iTunes since they started with a service that was better in almost every way when it started.
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Matt