Google Authenticator doesn't communicate with google at all - I don't understand where he pulled "but we were nervous about handing another key to identity over to a company whose primary business is search and advertising" out from?
Also, both the client and server software is open-source, so that can be confirmed too.
Also, a mobile phones time is synchronized by the GSM network, it doesn't drift much (if at all).
well, samsung makes phones with smaller screens too - so I can choose if I want a phone to operate with one hand or a phone to watch videos while commuting.
even supports json and jsonp