Google to host AJAX-Javascript libraries

Check out AJAX Libraries API. Got this via IndicThreads

It is a content distribution network and loading architecture for the most popular open source JavaScript libraries. By using the Google AJAX API Loader's google.load() method, your application has high speed, globally available access to a growing list of the most popular JavaScript open source libraries including: jQuery, prototype, script.aculo.us, MooTools and dojo Google works directly with the key stake holders for each library effort and accept the latest stable versions as they are released. Once we host a release of a given library, we are committed to hosting that release indefinitely.

What if we hosted these files? Everyone would see some instant benefits:
1) Caching can be done correctly, and once, by us... and developers have to do nothing
2) Gzip works
3) We can serve minified versions
4) The files are hosted by Google which has a distributed CDN at various points around the world, so the files are "close" to the user
5) The servers are fast
6) By using the same URLs, if a critical mass of applications use the Google infrastructure, when someone comes to your application the file may already be loaded!
7) A subtle performance (and security) issue revolves around the headers that you send up and down. Since you are using a special domain (NOTE: not google.com!), no cookies or other verbose headers will be sent up, saving precious bytes.

Do you get the feeling that Google is getting ready to compete with AWS(Amazon Web Services)?