Official Google Blog: One Fish, Two Fish, Red Fish, Blue Fish
I, for one of many, hate the new google favicon. I do not associate a lowercase blue g with google in the least. Every time I see it, I wonder what site I'm on. Bring back the big G, put it in a circle, cube, whatever. I'm find with colored backgrounds.
I even don't get all that riled up at the lack of American patriotic google images on important dates like Memorial Day and D-Day. But an ugly favicon? inconceivable!