If you were Eric Schmidt, and your company was making $10 billion revenue per year, why would you want to be a "reseller" of one of the best domain registrars to date. You wouldn't you would want to compete with them not boost their profits.

Besides if they sold their own domains they would make more profit than being a reseller. They have obvious reasons not to sell domains even 2 years on and they are not ready to rule that specific industry yet.

Google watching is a favourite pass time for many. Sometimes it goes to a ridiculous extend. I would be interested if google were to come up with any innovation, not just another paypal clone, godaddy clone etc.