Ok, but Schmidt's decision about China was a miscalculation, let's admit it. It brought a lot of problems for Google, and didn't bring them that much money. They weren't that much profitable there, despite quite a large market share.
There are 1.3 billion people in China. I don't think that any amount of miscalculations could have overcome that fact. It's also not that hard of a sell to say that "As long as we indicate that results were censored, we're doing what we can to bring information freedom to China one step at a time."