I think it is reasonable to assume that people who might otherwise want to work at Google might have second thoughts after hearing about this. Other companies seem to have figured it out, with regards to HR policies, and are still able to be profitable while allowing their employees to be creative and productive. I attribute this sort of thing to the "inexperienced management" discussed in the court proceedings of Reid v. Google, Inc. A company that wants to manage the world's information should invest some time and money to train its HR managers in industry-accepted HR policy, IMO. Such training will aid them in attracting and retaining a world-class workforce. I wonder how many people have decided not to work for Google, at a time when they are asking the US Congress to grant more visas, because they can't find enough people?
In case you're interested, commentary from Rocky Lewis, a pregnant (at the time) business owner of SageRock.com, an Internet marketing company.