I love how people say Google is not going to make money. I wonder how valuable the data will be to advertisers who can not only see where the commercials are being seen as well as well as dictate where the commercials are being shown. With google's advertising background as well as profiles they developed over the internet to tailor ads to the specific customer, they can extend this considerably to the television commercials. That is a premium market that they could charge more to advertisers. I believe the only reason they haven't announced nationwide expansion is to limit the fallout until they establish the foothold. Do see any phone company not opening up the war chest to fight them?
The next part is when they establish how much of a boon and economic growth develops from the fiber. How many companies come to the area to cut down on bandwidth costs. How many startups open up because of it. How many people move to the area. Do you think any politician will not turn down a chance to add that economic growth to his or her proverbial resume.
Google will also be able to cross-reference viewing habits with other services, searches, wallet, g+ etc. They could sell data to advertisers that people watching xyz show is also buying these products from G Wallet or is searching xyz things.
They could come up with a method for advertisers to launch a website on the remote (Nexus tablet) when the TV ad appears, allowing viewer to impulse buy directly from tablet using G Wallet. That's far more powerful for advertisers than what trad broadcasters can do.