The purpose of Google Fiber isn't to make Google the world's ISP, it's partly to demonstrate the feasibility of fiber to the home (in a big, public way) and partly to create demand (by being big and public).

Yes, it's more about hype and politics than installation. I thought that was obvious. If the hype and politics doesn't get the big ISPs off the dime, then it may have to become about installation, in which case the experience Google Fiber is obtaining will become important.