It's not bad. A lot of GPS applications and devices are way overpriced. Competition is never, ever a bad thing. Google gives away a Navigation application for free, which makes other GPS device manufacturers like TomTom rethink what they're offering, and they either innovate the market, or fail. If they fail, another more innovative company takes their place. They need to justify the cost of their application/hardware, and by doing so offer more features for customers.
Remember that if Google did things the wrong way, people would not use their software. They create software that people WANT to use, as opposed to overpriced software that people aren't interested in.
I don't agree that it's automatically a good thing nor am I saying it's a bad thing. I am saying people need to have more open, public discussion as to what is going on. If Google is going to keep entering markets and giving things away for free, we need to seriously consider the consequences of letting them do this. Google is doing things that are unprecedented with a business model that hasn't really been seen before. We don't know what their plan is. No one even knew they were doing this with their Map App.