Earlier quoted context omitted.
I think it's pretty clear what Peretti was talking about--let's make an effort to respond to his intended meaning and not get caught up in semantics. Peretti is talking about quality versus quantity: maybe Google doesn't serve up quality ads, maybe they just serve up quantity ads.
He may be right, but if Google is bad at ads, it's not for any lack of incentive alignment. They make more money by serving up the most efficient (i.e. high-paying + likely to be clicked) ads. It's not impossible, but it's hard to picture another organization having both the economic means and incentives to do it better than Google does. As to the question posed by the article, isn't the answer obvious? I don't know…
Yeah, I think the only way that would happen is if someone came up with a novel superior approach to search and managed to legally protect it so Google couldn't just copy it. That's a very unlikely at this point.
> But it is manifestly the case that they will cease to do so when Google's answers cease to be the least efficient for whatever purposes users have for those answers.
I don't think I agree with this. Users don't necessarily behave rationally in self-interest: they can be (and are) manipulated, and unwilling to try new tools.