Well I too would assume that Google has downloaded the SDK...  I'd also assume from the demo that they'll have all the google apps running in under two weeks... LOL

I think there are two possiblities why Google wasn't highlighted:

1) Apple is pissed off over Android and is giving Google the cold shoulder

or

2) Apple choose to make this event all about bussiness and the enterprise, which is all about exchange. 

There are lots of individuals that choose to use google apps, and undoubtably some enterprises are migrating there as well, but by and large enterprises need and want an exchange server solution, so that's what they highlighted.   

It's crazy to think of how many localized search apps are going to hit the iphone the day the SDK comes out...