Google Me to take on Facebook?

Rumours are currently circulating that Google is tipped to make its own social networking website/portal, named Google Me, to take on Facebook.

While Google itself is still in denial about the project, an ex-Facebook CTO, Adam D'Angelo claims it's very real.

On his company website, Adam writes:

Here is what I've pieced together from some reliable sources:

• This is not a rumour. This is a real project. There are a large number of people working on it. I am completely confident about this.
  
• [Google] realized that Buzz wasn't enough and that they need to build out a full, first-class social network. They are modeling it off of Facebook.
  
• Unlike previous attempts (before Buzz at least), this is a high-priority project within Google.
  
• They had assumed that Facebook's growth would slow as it grew, and that Facebook wouldn't be able to have too much leverage over them, but then it just didn't stop, and now they are really scared.

Internet celebrity (cough) Kevin Rose - who also leaked the information on the original iPhone - also claimed Google Me is reality on Twitter, but the post has since been removed.

Google has also recently hired a Social Web guru called Joseph Smarr too, who is again rumoured to be associated with the project.

Since Facebook is now doing social searching, clearly invading Google's home territory (not to mention the bitter history between the companies) Google Me not an inplausable adventure for Google.

We wonder, with the fight against Apple in the smartphone market and Microsoft in the office and cloud market, is Google biting off more than it can chew? With the catastrophic failure of Buzz and defunct status of Wave, what can Google bring to the table to compete? Let us know your thoughts in the forums.