Thanks to these guys, SMS via Google Talk is now banned from unofficial clients.
innerfence.com
innerfence.com
With Google's recent layoffs, and some of the more fluff applications being removed, I can only imagine its a matter of time until other things start getting cut to save on costs. When they start closing, all the applications people have built on top of them will have to collapse, and there will be far more complaints like this.
On another note, how on earth did that get through the App Store? Did apple really approve an application that let you send free SMS messages, when so much profit is made by the telephone companies off of them?
It was probably created by one department, and when it start getting big someone else noticed the raising cost and made them shut it down.
See also Youtube.