The 20% time is not really a luxury. Google owns what ever you make, so it's all just work.

My understanding is that Google is already cutting the real benefits. Microsoft doesn't have a co-pay on their insurance, but Google does. There is a waiting list for child-care. There aren't as many meal choices in their cafeterias, etc.

I have some friends that work at Google, and it sounds like the average corporate job these days.