Ubuntu has quickly risen in the ranks of available distros to become one of the most popular, especially for desktops, known for its ease of installation and maintenance. It has been modified and released in various forms, and now even Google is preparing 'Google Linux' based on Ubuntu. Utilizing Google's vast resources and their history of good stuff, it's a sure bet that if Google wanted to put out a solid distro, they could. Details are sketchy though, so how far this will be taken isn't clear. The article brings up a good point about the goal, though:

"However, entering the desktop software world would be a huge step. Making Goobuntu as easy to use as XP will require a lot more development. It's unlikely to be ready for showtime any time soon, and it's possible Google itself hasn't finalised where the project should go.
Whatever Google's intentions, the input of Google engineers and developers, writing new features and fixing bugs, will be a huge boost to the Ubuntu project."

Microsoft is perhaps Google's biggest rival at the moment, and the desktop market is not one to easily latch on to, so if Google does proceed it will be very interesting to see how MS reacts.