While I agree that Google should stay true to its mission, I also believe that Google could have, and should have done more.
The only silver lining in this dark cloud is a hope that maybe, just maybe Google has learned a bit on how Capitol Hill politics works. (It was clear from the beginning that Google called the shots on the Yahoogle side. Yahoo, not having much of a presence in DC, could have done little, if at all.)
Official Google Blog: Ending our agreement with Yahoo!