In an interview with TechCrunch's Michael Arrington, Google CEO Eric Schmidt had the following to say about social features in Google's future:

Our view of social is a little different than what everyone has been writing. we want our core products to get better from social information. The best thing that could happen is if Facebook opened up its network and if we could just use that information…Failing that, there are other ways in which we can get that information.

We are trying to add a social component [to google's core products] to make them even better. With your permission…and knowing more about who your friends are, we can provide more tailored recommendations, search quality will be better.

A reasonable expectation [of launch] will be the Fall.

Google Me apparently will not be a standalone product, but a layer on all of Google's other services. Google Buzz will also play a part.