Google is about as innovative as it gets. With the advent of the Android operating system, we knew a phone would follow...an official Google phone. It came, and it was called the Nexus One.
While it was certainly a hit, and the Android OS has taken off to new heights, the online storefront that Google created for the Nexus One was neither hit nor height.
Given that people like to use devices before they buy them, the online store was bound to fail compared to a retail launch.