I'm sure some are going to immediately say "Yet another Google casualty", but I feel like this one probably needed to happen. It's been stagnant for years, and they have been on the mindshare decline since the first two years. I dread having to deal with open source software that is still on Google Code. Admit failure, provide plenty of notice (like they're doing), and close up shop so resources can be spent on more…
There are thousands of independent/homebrew projects that call Google Code their home that will probably vanish overnight. And not everyone likes using Git to begin with. I don't see why they don't put stricter requirements on starting a project page or contributing instead of making this move.
FWIW. Mercurial can use Git as a backend which would ease the tension for those not enamored with it.