"Google's strategy seems to be to get people to spend more time on the web so they can view and click on Google ads."

Only this is an idiotic long term strategy, if Google was to go even more full speed ahead to achieve this. Getting people to spend more time on the web takes a lot more money that can be generated per person via Google ads. Especially when they can spend that time on Facebook or any other Google competitor.

Google, for example, looses tons of money on Android just to "secure" their place among mobile platforms. This will not go well.