Makes sense to me. Google Flights is amazing, Google Stocks is better than my broker (and way easier/faster), Translate doesn't even have a decent competitor, and Restaurants isn't perfect but just makes it easier to get to Google Maps.

As a consumer, this is great.

As a small business owner, I'm not very concerned about Google usurping pieces of my site into a widget. If the entirety of a business/site can be replaced with a free single-action widget, it's probably better for the consumer to do so.

If I were a big business (Expedia, Yelp, etc) affected by this, I would be more concerned about improving my product than a competitor simply copying functionality.