I am not surprised that Google was able to argue that their trademarked name "Google" has not become a generic term, because they have an army of attorneys and lots and lots of money.
That said, I personally think that people use with frequency the word "google" as a verb (ie, Why don't you google it) when referring to using any search engine. This is similar to people using the word Kleenex to refer to any tissue (e.g., you don't hear people saying "I need a Puffs"), and when using the word Xerox to refer to any copier.
Like Google, though, Xerox and Kleenex were able to defend their trademarks against claims their marks had become generic by spending millions of dollars advertising their brands and emphasizing the fact that their names were registered trademarks. And Google, in addition to this latest fight over their trademark rights, earlier made sure that dictionaries are not defining the word "Google" as anything but an identifier of their company and its services, and not a term that applies to a search of the internet.
The former trademark holders of "Escalator" did not fare so well in defending their mark.