Google has seen success in large part because of their attention to speed, reliability and quality of their services. Loading up the Google homepage is usually instantaneous, and searching through their gigantic web index takes a fraction of a second.
Unfortunately for Google, they don't have as much control over their own speed and user experience as they once did. The problem is that Google lets third party developers create applications (called Gadgets), which are often poorly programmed.
The solution: To pass out "badges" that identify slow gadgets -- likely putting the brakes on people wanting to install them. Fast gadgets will continue to see business as usual, which Google hopes will be enough of an incentive for developers to create gadgets that meet their speed guidelines.