I'm not sure if I'd call it a struggle between David and Goliath; this is more like three Goliaths in combat. But as you said Google is ready! I'm one of those people that has come to trust Google over the years, simply because of the merit of their services. Though I've used Microsoft products for twice the amount of calendar-time, I can't unfortunately say the same of them.
This is in response to Joelle Alaya's article - Yahoo and Bing Teaming up Against Google
Google's incessant focus on search throughout their history is IMHO the sole reason why they continue to be the best search engine out there. Sure they have done tons of other stuff like Apps, Gmail, Android, Wave etc, but all of it is related to improving search. Here's a clue for Microsoft to stick to core-competences, instead of madly obsessing about domination in every new market that develops in course of industry evolution.
If Microsoft should take cues from the best ever Internet company there was, it should be to improve their core-competences, namely Office Apps and consumer Operating Systems. That will for sure make us customers happy (coz we can stop wasting money on failed products like Vista), maybe even some day love M$ products (which honestly very few of us currently do), and help gain market-respect.