What do you do when Alex Eckelberry writes to you and says "we have a new major problem"?
You start sounding the alarm, that's what you do. I urge you to read this link, and spread the word.
http://sunbeltblog.blogspot.com/2007/11/breaking-massive-amounts-of-malware.html
Take a close look at the URLs for the malware links; they are all random collections of letters and numbers, and they're all Chinese domains. Users of Google (and other web search engines) need to pay close attention to the links that are being offered, and avoid anything that just doesn't look right, and certainly avoid 'nonsense' domains like those in the Sunbelt screenshots.
FWIW, a quick check using Windows Live Search does *not* result in a slew of malicious sites.
If Google wants to be the Sun around which we all revolve then they are going to have to clean up their act, and fast. I admit, Google do try to flag sites that they know are dangerous, but *none* of the malware links in the screenshots are flagged as malicious.