Google's acquisition of JotSpot is fortuitous. Google Docs and Spreadsheets already had much of JotSpot's capabilities. JotSpot acquisition rounds things out and has some nice templates already in place, and it accellerates a few things.
This is not good for SocialText or Coghead. Although they will probably say it "validates" their market.
The deal also has most of the "Office 2.0" crowd in its sights. Can't see much future there, especially since the likely customers for Office 2.0 type applications were the small businesses that don't want to pay Microsoft. Of course, the corporate market will continue to hug their servers and pay Redmond.
Google, again, has virtually demolished yet another emerging software sector, and it is not even interested in monetising it. Good for us, not good for thousands of people working in those startups and their investors.
This type of action by Google must surely freeze further investments in software. Afterall, competing with Microsoft used to be bad enough, but Google doesn't care if it makes money--that's a definition of a "bad competitor." At least competing against Microsoft you knew that they want to make money and so you had a chance of coming in under their cost basis. No such luck with Google.