A conciliatory end? Looks like we spoke too soon. Yes, Google and China seem to be on a collision course yet again, with the company's "Mainland China service availability page" showing that web search and ads have once again been fully blocked. Additionally, image and news search have been downgraded from "fully accessible" yesterday to "partially blocked" today. YouTube, Picasa, and other services already blocked remain as such. Looks like the saga continues.
[Thanks to everyone who sent this in]