Currently I would put my faith in a corporation over the current Bush administration in handling communication. If what you say about increase in power and loss of central control is true then world Governments would be liable to the same equation you came up with.
A competitive market will only be better for the consumers. Google having so many free features is their way of winning against MSoft and will only benifit us.
Though I am sure your saying "Google is starting to become evil in my eyes" is not meant to be taken as the mantra of your argument as I don't believe anyone could be that naive to treat each company with such a pessimistically paranoid narrow mind.
Everyone will take this rise of power differenly but personally I think its great news for us consumers.