I assumed the reason the tool got axed was because in short order, Microsoft released its own desktop search, and then integrated it into Windows (Vista?); and Apple added Spotlight to OS X. In retrospect it’s a little surprising to me that in just a couple of years, the notion of indexing your entire hard drive went from novel to taken for granted.
I think desktop search existed before Google's. But not a lot of people used it in my experience. I found Google's to be fantastic,a and it was nice it showed results in line with the mostly used search engine. I was surprised when they discontinued it too, and suspect it was some "gentlemen's (anti-consumer) agreement" between companies around turf.
