I was nodding my head u til I got to the end - it seems like the google prediction API _is_ the magic fairy dust we've been waiting for?
The google prediction api takes care of the code for algorithmic computation. While that's handy, it's only one step of a much larger process. The scale of that process is something that many people don't fully understanding about machine learning (yet).
When AJAX first came out, not everyone knew how to do it - but now, everyone can drop in jQuery and do all sorts of complex things relatively easily.