Earlier this month, Google attempted to make a shot across Microsoft's bow with an Apps Sync for Outlook. Unfortunately for them, it completely fizzled when Microsoft made clear that the plugin disabled key Outlook functionality.
Google admitted as much at the time. But today, they've announced that the issues have been fixed. Windows Desktop Search now works, and users can control how the archiving operates. For those who continued to use the completely dysfunctional version, Google will save you from yourself by automatically updating to the current release.
In what looks like an attempt to appease Microsoft more than anything else, they also have taken steps to make crystal clear where data is being stored, and making autoarchiving something users can control. In addition to the fix, Google threw a lifeline to those still stuck in 1996 with support for access to Windows Live Hotmail via the Outlook Connector plugin.