Google, don't even waste your time with Google Circles, the social network that ReadWriteWeb reports is coming soon. Just let Facebook have the social networking space.
I'm worried that Google won't be able to turn away from the money and try to make Circles into a full fledged Facebook copy. Yes, Google does have the advantage of knowing damn near everything about via search, but how can that be used in a Facebook-like environment tha thrives off of existing relationships? It makes more sense in a Twitter-like atmosphere, where you don't have to have an existing personal relationship with our followers, but we all saw Buzz flop horribly.
The stumbles of Buzz, Wave (remember that?), and Profiles (checked yours lately and made sure it was up to date? Of course not ...) show that Google is best at the engineering technical side of the web. Their algorithm is so good that Bing allegedly leeches it.
Google, please stick to your strengths. Work out a deal with Facebook if you want to participate in the social sphere. Remember, Jack is watching you ... do you want to be kicked out of the circle of trust?
Or maybe end up like Jinx in the toilet.