According to articles on NewMedia Report, CNet.com News and PaidContent.org Google is about to unleash a classified product. A company called Oodle has been creating some buzz recently for their classified aggregating capabilities and offers. Also Recycler.com, a Tribune product, has also been introduced in several cities. All of these products are similar to Craig Newmark's craiglist which offers free classified advertising which has helped to plummet the paid classified advertising market in both online and in newspapers. So we will probably soon see what Google has to offer.
For the blogosphere voice on a Google classified product check out TP Wire Service, Breaking The Media Code, Mark Maunder's blog, and ReadUponIt.