I don't know if any of you caught the recent news or announcement about Google planning to create some form of Facebook like site. The article I read did mention the wold doesn't need another Facebook replica. So it kind of implies that they would create something a little different.
If anyone has the money and programmers to develop something like this it would be Google. Sometimes Google comes up with things that take off, and other times they don't go so well.
Whether Google is feeling a little heat or threat from Facebook's dominant popularity is unknown. I have a feeling they want to stay one step ahead of the competition.
On the other hand if Facebook ever decided to expend to new frontiers that could compete with Google more they might be the ones who could do it. However, Facebook doesn't have as much money as Google does. Plus Facebook tends to have privacy and other issues they get flak for all the time. I don't know if Facebook has the management needed to compete with Google for many things. You never know though.
I'll keep following Google updates into the world of social networking or the Facebook like site they come up with. Most likely it will be a while yet anyway, but it could end up being interesting.