“There will be no banner ads on the Google homepage or web search results pages. There will not be crazy, flashy, graphical doodads flying and popping up all over the Google site. Ever.”

– Google Vice President of Search Product and User Experience Marissa Mayer

“People wouldn’t like [ads on the homepage]. We prioritize the end user over the advertiser.”

– Google CEO Eric Schmidt, August 2009

Well, this is a first, I think: Google is promoting a consumer electronics device on its front page. Surf over to Google.com right now and you’ll find this pitch plugging Droid, Motorola’s (MOT) new Android smart phone: “The Droid is on sale now. Learn more.”

The text is simple and at just 42 characters, it jibes well with Google’s (GOOG) minimalist design ethic. Click on that “learn more” link and you’re taken to a mobile partners page that touts Droid’s Google-enabled search prowess. Only then are you presented with a big “Get the Verizon Droid Now” button that takes you to Verizon Wireless (VZ), where you can purchase the device.

So is it an ad? Google will almost certainly argue that it is not. But clearly, it commercializes the page. Droid is a consumer product sold by another company and Google is branding it on its most prominent page. Wonder how much that spot is worth.

Furthermore, it’s interesting to see Google leveraging search–a product in which it enjoys a de facto monopoly–to promote a second product that isn’t yet dominant (Android). More so, given this remark from CEO Eric Schmidt, made just yesterday:

“Hopefully, we won’t repeat the mistakes that Microsoft made 10 years ago that ultimately led to all these things that happened to them.”

I’ve asked Google for comment and will update this post if and when I receive a reply.

UPDATE Here’s Google’s comment on the Droid promotion via company spokesperson Gabriel Stricker:

We are currently running a homepage promotion for Droid. From time to time we include a link on the Google home page that points users to exciting and important information, whether it be relief opportunities in the wake of a tsunami or hurricane, awareness about an important cause, or information about a new product. The Droid is a hardware collaboration that we’ve been very active and involved with, so it makes sense that Google has an interest in getting the word out.

UPDATE Turns out this is not the first Google has promoted a handset on its homepage. Last October it plugged another Android device there, the T-Mobile G1.

“The cost of smart phones is considerably higher than feature phones for which the early termination fees were created years ago at $175,” said Verizon spokesman Jim Gerace. He added that the new $350 ETF declines by $10 per month through the life of the contract and customers can avoid it by buying their devices off contract and paying full retail price.

An interesting move for Verizon (VZ), which just last year agreed to pay $21 million to settle a class-action lawsuit filed by California consumers over the very early-termination fees it is now increasing. The plaintiffs in the suit alleged that Verizon’s ETFs were illegal under California law and that they were designed to unfairly lock consumers into long-term contracts and prevent them from switching carriers. When Verizon settled the suit, it denied any wrongdoing, insisting that early-termination fees are simply a means of recovering legitimate costs. And to some extent Verizon does have a point.

Full retail price for the Motorola’s (MOT) new Droid is $559.99. With a two-year contract, Verizon sells the handset for $199.99. Theoretically, that’s a $359.99 subsidy (I have no idea at what price Verizon purchases Droid from Motorola). So if Verizon allowed subscribers to break their contract after a month without paying an early-termination fee, the company would stand to lose money. And subscribers who did so could subsequently sell the device online and potentially make a profit, though a small one.

So it’s certainly understandable that Verizon and other carriers want to protect the subsidies they dole out for these new smart phones. And as noted earlier, Verizon’s new ETF drops by $10 each month a subscriber remains under contract. But at this rate, subscribers are still bound to pay a $110 termination fee in the 23rd month of a two-year contract. The contract is nearly over, the subscriber obligation to Verizon almost fulfilled, yet the company can still slap its customers with nearly a third of the full ETF if they break it at that time.

By month 23 of a two-year contract, does Verizon really stand to lose $110 if subscribers decide to switch carriers? Doesn’t seem likely if subscribers can walk away just a month later without consequence, taking their handsets with them.

Since Verizon is pro-rating the ETF, why isn’t it doing so in such a way that it zeroes out by the end of the contract?

And isn’t the fast pace of innovation in the smart-phone sector such that prices–for both component and device–are dropping so quickly that high ETFs aren’t really justified? Remember, you can get Apple’s (AAPL) iPhone for $99 today. When the iPhone debuted in 2007, it commanded a price of $499/$599, depending on model.

I’ve put those same questions to Verizon and will update here when I hear back. In the meantime, here’s what Consumers Union policy analyst Joel Kelsey has to say on the matter: “When people want to switch wireless services, the biggest cost they face is early termination fees. These fees are designed to lock people into long-term contracts and stop them from getting better deals. Early-termination fees make the marketplace less competitive. Verizon’s move is painful proof that it’s time for lawmakers to crack down on these fees.”

UPDATE: Verizon Wireless spokesperson Nancy Stark offers the following answers to the questions I posed above:

Your first question regarding the balance at month 23 or 24 assumes that, at that point, we have recovered all of our subsidy and up-front costs for every device. That simply is not so.

On your second question, while the pace of innovation plays a role in prices coming down somewhat, it also plays a role in driving up costs as more and more complexity that customers want is added to phones–from premium HTML browsers to high-resolution MP cameras with optical zoom; videoplayers; music players; dual processor chipsets; WiFi; very high display resolution, operating systems such as BlackBerry, Windows Mobile, Palm, Android–ALL with the added value (vs a desktop) of mobility, and ALL in one tiny device that ALSO allows you to talk to anyone from anywhere. phew! (by comparison, I recently paid $200 for a camera and all it can do is take pictures, and it has only middle of the road capabilities.)

But getting back to ETFs specifically. The most important point is that Verizon Wireless customers do not have to have an ETF at all if they do not want to. ETFs allow customers to have it either way: They can have no ETF and pay full retail for their device. OR, they can get a greatly discounted device by having an ETF.

Apple TV 3.0 is largely as rumored: Adding support for Internet radio, Genius Mixes, iTunes LP and iTunes Extras (bonus clips, interviews, etc.). But it boasts another new feature as well: A redesigned user interface.

Whether the debut of Apple TV 3.0 heralds a hardware refresh of the device itself is anyone’s guess. It is worth noting, though, that there’s been quite a bit of speculation recently that Cupertino is working on an overhauled device that will offer DVR capabilities and support iTunes TV show subscriptions.

As Piper Jaffray analyst Gene Munster wrote back in August: “Apple could leverage its deep library of content with many network and cable channel content owners to provide unlimited access to a sub-library of its TV shows for a standard monthly fee ($30 or $40 per month).”

According to Munster, “Such a product would effectively replace a consumer’s monthly cable bill (~$85/month) and offer access to current and older episodes of select shows on select channels. The selection would dictate the value, and several tiers could be offered, but we see this as one way for Apple to leverage its large iTunes content library as well as its unique Apple TV hardware in order to get digital video to the TV for a price significantly less than the average cable or satellite TV bill.”

Sounds sweet, right? And it would be sweeter still if it were to offer App Store support and allow users to control games and other apps via iPhone or iPod touch …

Below, the official Apple (AAPL) release:

Apple Introduces Apple TV 3.0 Software With Redesigned User Interface

Enjoy iTunes Extras, iTunes LP & Genius Mixes on Your HD TV

CUPERTINO, Calif., Oct. 29 — Apple® today introduced new Apple TV® 3.0 software featuring a redesigned main menu that makes navigating your favorite content simpler and faster, and makes enjoying the largest selection of on-demand HD movie rentals and purchases, HD TV shows, music and podcasts from the iTunes® Store even better on your TV. You can now enjoy iTunes Extras and iTunes LP in stunning fullscreen with your Apple TV, as well as listen to Genius Mixes and Internet radio through your home theater system. The new Apple TV software is available immediately free of charge to existing Apple TV owners, and Apple TV with 160GB capacity is available for just $229.

“The new software for Apple TV features a simpler and faster interface that gives you instant access to your favorite content,” said Eddy Cue, Apple’s vice president of Internet Services. “HD movies and HD TV shows from iTunes have been a huge hit with Apple TV customers, and with Apple TV 3.0 they get great new features including iTunes Extras, Genius Mixes and Internet radio.”

The redesigned main menu on Apple TV gives you instant access to your favorite content. Recently rented or purchased movies, as well as other content including TV shows, music, podcasts, photos and YouTube, are accessible directly from the new main menu. The new software also allows Apple TV users to enjoy stunning fullscreen iTunes Extras and iTunes LP, including great new movie titles such as “Star Trek” or classics like “The Wizard of Oz” and albums such as Taylor Swift’s “Fearless (Platinum Edition)” and Jack Johnson’s “En Concert.” iTunes Extras gives movie fans great additional content such as deleted scenes, interviews and interactive galleries. iTunes LP is the next evolution of the music album, delivering a rich, immersive experience for select albums on the iTunes Store by combining beautiful design with expanded visual features like live performance videos, lyrics, artwork, liner notes, interviews, photos, album credits and more.

Now Apple TV users can enjoy Genius Mixes through their home theater system and listen to up to 12 endless mixes of songs that go great together, automatically generated from their iTunes library. Customers can also enjoy Internet radio, allowing them to browse and listen to thousands of Internet radio stations, as well as tag favorite stations to listen to later. Apple TV’s support of HD photos is enhanced with iPhoto Events, which simplifies finding your favorite photos on Apple TV, as well as iPhoto® Faces, which gives access to photos organized by people identified in iPhoto.

Apple TV users have direct access to a catalog of over 8,000 Hollywood films on iTunes including over 2,000 in stunning HD video available for rent or purchase. Users can also choose from a selection of 11 million songs, 10,000 music videos and over 50,000 TV episodes to purchase directly from their Apple TV or browse and enjoy the iTunes Store podcast directory of over 175,000 free video and audio podcasts. Purchases downloaded to Apple TV are automatically synced back to iTunes on the user’s computer for enjoyment on their Mac® or PC or all current generation iPods or iPhones.* iPod touch® or iPhone® users can download the free Remote app from the App Store to control their Apple TV with a simple tap or flick of the finger.

Among the upgrades: A slimmer design, a 3.2-megapixel camera, sharper 360-by-480 display, 802.11b/g Wi-Fi support and an optical trackpad similar to that of the BlackBerry Curve 8520. The new handset is also outfitted with a 624MHz processor and 256 MB of flash memory.

Paired with BlackBerry OS 5.0, this should mean some decent performance gains. So an incremental update, but little more. Said RIM co-CEO Mike Lazaridis: “This is the Bold for those that wanted it just a little smaller, but still wanted the Bold look, feel, performance and materials.”

T-Mobile has pulled its Sidekick handsets off the market following a back-end server failure that resulted in many users losing their personal data. Surf over to the carrier’s Web site and you’ll find that it now lists the entire Sidekick line of devices as “temporarily out of stock.” Evidently, T-Mobile would prefer to resolve the current service issues before it resumes selling the Sidekick–not that anyone would buy one right now anyway.

Microsoft (MSFT) and T-Mobile still haven’t explained why the server failure occurred and more importantly, why they don’t have a backup of lost user data. Meanwhile, speculation is mounting that the failure was caused by an attempted storage area network transition without contingency plans.

Notably absent from this update, however, is the reenabling of iTunes synchronization, which Apple (AAPL) spannered when it released iTunes 9.0 earlier this month. Seems that Palm (PALM) was either unable to develop a way to restore this feature or has thought better of doing so after the USB Implementers Forum took issue with the manner in which it was doing it.

Well, no longer. Because Apple (AAPL) is planning to refresh its iMac desktop computer in the next few weeks, and when it does, it may well offer a Blue-ray drive option.

Sources tell AppleInsider that the new all-in-one, dual-core desktops, which are also said to feature a new, slimmer enclosure, were finalized earlier this month and are already rolling off the assembly lines of Apple’s manufacturing partners.

“The late 2009 iMac line should also debut several features previously unavailable to Mac buyers,” the publication notes. “People familiar with Apple’s thinking have suggested in recent months one of these moves could see the company finally embrace Blu-ray.”

One last point worth noting here: According to the MacRumors Buyer’s Guide, the iMac is due for a refresh. Apple has updated it every 220 days on average since it debuted the machine in 2003. As of today, it has been 204 days since the last update. MacRumors’s recommendation: “Buy only if you need it–Approaching the end of a cycle.”

“We know you’ve been eager for this service so we wanted to offer a quick update on the launch plans for MMS on Friday, Sept. 25,” AT&T explained on its official Facebook page. “Late morning, Pacific Time, on Friday, the new carrier settings update enabling MMS should be live and ready to download through iTunes.”

Assuming everything goes as planned. And sources inside AT&T (T) tell DSL Reports that the carrier is “very nervous” that it might not. “AT&T and its MMS partners are already seeing ‘record traffic during peak hours of the night’ with just the users selected for testing,” the publication says. “That early testing has been a little rocky, with AT&T seeing a fairly significant test outage yesterday that has them rushing to beef up their MMSC messaging servers. Estimates among those working on the project are that traffic on AT&T’s wireless network will be about 40 percent higher all day on Friday as iPhone users fire pictures and video at one another.”

BoomTown was abuzz with Pixis, Plums and power this week as Kara focused on tech that wasn’t Apple, and reminded us that lady geeks hold the power in Silicon Valley.

While Apple was gathering clouds for its Rock and Roll storm, Palm (PALM) released the teeny Pixi, designed, Palm hopes, to steal some of that Apple (AAPL) thunder. The Pixi smart phone, while smaller and thinner, reported Kara, has fewer features and less power than the already available Pre.

Small can be good in the world of tech, and BoomTown reported that a certain Nordic tech behemoth thinks so too. Nokia (NOK) announced that it had acquired “microsocial networking” start-up Plum, whose signature offering allows users to build smaller, more intimate electronic social networks.

Kara did it “like a boss” this week and highlighted the tech sector mavens from Fortune magazine’s annual list of most powerful women. Ursula Burns of Xerox (XRX), IBM-er (IBM) Ginni Rometty and Oracle (ORCL) President Safra Catz were among those at the top. BoomTown will be at the upcoming conference associated with the Fortune list, so look for Kara’s Flip video interviews with these Titanias of tech.

It was nice of Apple to release new iPods just in time for John’s birthday this week, and Digital Daily returned the favor with high-bandwidth, hard-rockin’ coverage of Apple’s music-themed event, complete with live photos and blogging. John liked the video feature of the new iPod nano, but focused on the biggest news of the week–Apple’s upgraded CEO.

Digital Daily’s Apple coverage didn’t stop at The Steve. Ever since announcement of the exclusive Apple-AT&T (T) partnership, current and would-be iPhone freaks have speculated as to what kind of deal will be struck when that contract expires. John reported that iSuppli prognosticators think the agreement may be extended when it runs out in 2010.

John closed out the week with Twitter leaks about the newest incarnation of Microsoft’s (MSFT) Google-toppler (GOOG), Bing. Microsoft showcased Bing 2.0 at the annual company meeting, which some employees took as a green light to tweet away about the unreleased product. Microsoft HQ was more tight-lipped, telling John only that the rollout would happen over the next few months.

MediaMemo followed the money this week–specifically advertising dollars. A year after the Lehman collapse, Peter cited a MediaPost survey that showed some growth in ad spending. In a down market, Peter reminded, sometimes the only place to go, is up. Let’s hope so.

Not to be left out of Apple’s party, MediaMemo covered the release of an iPhone app from RealNetworks (RNWK) that brings all-you-can-eat music for a monthly fee. Wall Street barely blinked at the deal, but changes may come if the service catches on as competitor Spotify has in Europe.

And while the NFL won’t let players tweet from the end zone, it is upping its tech quotient by bringing blacked-out games to your Internet browser. MediaMemo reported that the lower-attendance games would be available to tech-savvy sports nuts–after midnight on game day. Get out the Fritos and espresso, guys, its game time.

True to form as the Lincoln of our very own Mt. Techmore, Walt’s address this week was aimed at helping the wayward get back on track with a bevy of new iPhone navigation apps. This new breed of high dollar apps harnesses the power of the iPhone 3GS to replace those ever present dash top GPS navigation units.

Walt extended his techno-presidential benevolence with another installment of Mossberg’s Mailbox. Networked storage, Quicken for Mac and the ominously impending switch to Windows 7 were all up for discussion.

At the Mossberg Solution, Katie tested Postbox, software designed to bring novel management solutions to your inbox. Developed by some of the guys from Mozilla, Postbox does offer lots of great features, Katie said, even if the switch to the new tools might not be easy for all.

Lots more shiny new tech talk next week. Stay tuned.

Twitter has already had repercussions in the courtroom. Now it has had them at Microsoft’s annual company meeting as well. Employee tweets from the gathering Thursday revealed that we may see a major update to the company’s Bing search engine as early as next week.

“Saw the demo of Bing 2.0, super imressive! Watch out its release next week,” said one catalogued by All About Microsoft’s Mary Jo Foley Yes, “impressive” is not spelled correctly in the tweet–maybe someone needs to Google (GOOG) a dictionary stat!

“BING 2.0 terrific,” enthused another.

“Watch out guys ! bing + silverlight in maps = amazing !! goodbye google.”

And another: “Bing 2.0’s upcoming search visualization is pretty sexy…”

Finally, my favorite: “wondering if the Bing team really wanted everyone at the company meeting to announce on twitter when Bing 2.0 is going to be released?”

Evidently not. Reached for comment, Microsoft (MSFT) had only this to say: “We’re very excited about some of the new Bing features set to roll out over the next few months, but have nothing to announce today.”

But perhaps next week.

The flaw was first demonstrated Thursday. “This is serious. The only thing you can do to prevent it is turn off your phone,” security researcher Charlie Miller said of it earlier this week. “Someone could pretty quickly take over every iPhone in the world with this.”

Well, not anymore, as Apple (AAPL) was quick to note. “This morning, less than 24 hours after a demonstration of this exploit, we’ve issued a free software update that eliminates the vulnerability from the iPhone,” said an Apple spokesperson. “Contrary to what’s been reported, no one has been able to take control of the iPhone to gain access to personal information using this exploit.”

“iTunes 8.2.1 disables devices falsely pretending to be iPods, including the Palm Pre. As we’ve said before, newer versions of Apple’s iTunes software may no longer provide syncing functionality with unsupported digital media players.”

– Apple, July 15, 2009

“Oh, and one more thing: Palm webOS 1.1 re-enables Palm media sync. That’s right–you once again can have seamless access to your music, photos and videos from the current version of iTunes (8.2.1).”

– Palm, July 23, 2009

Devices “falsely pretending to be iPods” can once again sync with iTunes, whether Apple (AAPL) likes it or not.

Palm (PALM) this evening released an update to the Pre’s webOS operating system that restores the iTunes syncing ability disabled by its Cupertino rival only last week.

“Palm has released webOS 1.1, which, along with offering more robust EAS support for business users, re-enables Palm media sync,” said company spokesperson Lynn Fox. “Palm believes that openness and interoperability offer better experiences for users by allowing them the freedom to use the content they own without interference across devices and services, so on behalf of consumers, we have notified the USB Implementers Forum of what we believe is improper use of the Vendor ID number by another member.”

The “oh, and one more thing” was a nice touch. But let’s face it, nothing can come of this but ugliness….

That’s when Apple (AAPL) is expected to roll out iPhone 3.0, an update that will bring a number of long-anticipated features to the iconic device. Among them: voice memos; a landscape keyboard for Mail, Messages, Notes and Safari; a phone-wide Spotlight Search; push notifications; the long-overdue cut, copy and paste; and MMS and Internet tethering–neither of which is currently supported by AT&T (T).

Let’s hear it for carrier exclusivity!

More than six million downloads by Microsoft (MSFT) Windows users? That means that Safari 4, at least at the outset, is more popular on Windows than on the Mac.

Now, the former’s installed base is significantly larger, I know. But still…. Clearly, Apple’s (AAPL) 2007 decision to suggest Safari to Windows users via the iTunes software update has done great things to boost usage on that platform. As Apple CEO Steve Jobs said when Safari for Windows was first announced:

How are we going to distribute [Safari for Windows]? We don’t really talk to these customers, do we? There are over 500,000 downloads of Firefox a day. What are we going to do? Well, it turns out, there are over 1 million downloads of iTunes a day. As a matter of fact, there have been over a half a billion downloads of iTunes to Windows Machines. Over half a billion. And so we know how to reach these customers and we are going to do exactly that.

And successfully, too.