I actually think there's a LOT of fat that could be cut at Google without affecting innovation. One person I know - I've literally never seen him wearing a shirt that he didn't get for free at Google. I've seen people get new Mac power adapters because the tech stop was closer than their desk.
These things are pretty small compared to salaries - and they do serve a purpose - having to buy your own t-shirts and pay for your own gym membership is a pretty good reason never to quit, but I wonder how much they foster a culture of just throwing money at problems instead of innovating? I wonder how much they make Googlers soft and entitled.