(If you've forgotten, Google Catalog Search was scanning and OCR-ing print catalogs).
Google is also shutting down (or reducing features of) G Notebook, G Video, Mashups, and Dodgeball.
While most of the blogosphere commentary focuses on the Google profitability angle, shuttering G Catalog Search also reflects on the diminishing role of catalogs overall.
Catalogs to prior buyers won't be going away any time soon. Typically, housefile mailings are quite profitable, and will remain so.
But for many mailers, with the rise of the web and in this economy, prospect catalog circ is rapidly heading onto the endangered species list.