Can Google CheckOut checkmate Paypal ?

Google has officially announced the launch of much awaited Google CheckOut - an online payment service that competes with market leader paypal. Some feel CheckOut cud washout paypal and some feel they both could live their own happy lives. I am seriously thinking of moving to Google Checkout once they get a pretty good merchant base. But then I also get thoughts if I should base my online identity / life entirely on Google ? like I primarily use gmail, blogger, orkut, Analytics, Adsense and on.. So Google could easily identify and connect dots .. but still I guess I trust them. hm..