The End of Google in China?

"We have decided we are no longer willing to continue censoring our results on Google.cn, and so over the next few weeks we will be discussing with the Chinese government the basis on which we could operate an unfiltered search engine within the law, if at all. We recognize that this may well mean having to shut down Google.cn, and potentially our offices in China."
It certainly sounds like that may be the end result if Google, disgusted with state censorship efforts and outright "attacks," follows through - and the Chinese government resists a more open search engine as anticipated.
Since this is the most populous nation...and with Mandarin internet users surpassing English-speaking users...knowing that Google attempted to work with the Chinese government censorship demands...Google threatening to throw up its hands and pull out is a big deal.