Yeah, after reading that article and watching Schmidt on Charlie Rose, I feel that he's a little out of touch with technology. His idea of monetizing youtube involves micropayments of a few cents per view, and his idea of the 'next thing at google' is some weird wikipedia mashup on mobile phones.
After seeing that headline (I'll admit I skipped the article) - I figured that Google was either making a play for twitter behind the scenes - or had been rebuffed by them.