As an Xoogler, I think this is great news. By the time I left a year ago, there were far too many far-flung buildings in Sunnyvale, with new ones opening all the time (and my group was -- and still is -- slated to move into exile in Sunnyvale).

These were the worst of both worlds -- you still had to deal with a Bay Area cost of living and commute, but you were too far to easily collaborate with other groups, or take advantage of events & resources on the main GooglePlex (TGIF at Charlies, author talks, various events, picking up dogfood hardware, etc.) Not to mention fragmented bus routes.