I was a little annoyed that someone posted yet another link about Google fixing the EULA, but this actually has some decent info in it about why they need section 11 for the other Google services...
"You'll notice if you look at our other products that many of them are governed by Section 11 of our Universal Terms of Service. This section is included because, under copyright law, Google needs what's called a "license" to display or transmit content. So to show a blog, we ask the user to give us a license to the blog's content. (The same goes for any other service where users can create content.) But in all these cases, the license is limited to providing the service. In Gmail, for example, the terms specifically disclaim our ownership right to Gmail content."
"You'll notice if you look at our other products that many of them are governed by Section 11 of our Universal Terms of Service. This section is included because, under copyright law, Google needs what's called a "license" to display or transmit content. So to show a blog, we ask the user to give us a license to the blog's content. (The same goes for any other service where users can create content.) But in all these cases, the license is limited to providing the service. In Gmail, for example, the terms specifically disclaim our ownership right to Gmail content."