They've acquired a few products by buying them in, e.g. Blogger, but have also created many of their own innovations. The best known example is GMail. I signed up for that to see what it was like. It's pretty good, but I'm just using my 2GB for extra storage just now.
The have also added Search History, which may have more privacy implications, and Desktop Search, which I find very useful at work.
Today I read that they have added the facility to personalise your Google page with news headlines etc. This is quite neat as it integrates GMail more. For many years I have had a home page at Yahoo! that did something similar. If Google could add some cartoon strips I may have to change my browser home page.