I can't see Google and Microsoft ever making a deal. Google's heading the exact same direction as M$. The only difference in strategy is they are taking a platform agnostic approach... which is smarter in this day and age.
For instance:
Google aquires Writely and it will probably aquire
Dabble next. It's shaping up to be the next generation office.
When they perfect this, how long do you think it will take major corporations who spend waaaaaaaaaaay too much money on Windows licenses to stop paying the fee and go Linux? I say 5 years max if Google gets it all right.