Standing up to the DoJ was the right thing to do. Good job!
This isn't a criminal case, nor even a catch-all anti-terrorism request, it's nothing but a fascist administration's efforts to re-enact right-wing legislation already declared unconstitutional by the Supreme Court. If the DoJ succeeds it throws the doors wide open for future data requests, which will of course become much more invasive. This is an administration that has already spyed on its own citizens with little legal justification, after all. They will have no qualms about using this sort of data to invade the privacy of millions of American citizens in order to further their far-right agenda.
The pragmatic thing, I'm sure, would've been to just roll over and give up some samples, but I have little tolerance for this sort of thinking. I hope Google can get as much legal, monetary or simply verbal help it can get from the other companies involved, including Microsoft, AOL and Yahoo!.
Update: HOLY SHIT, it's even worse than it first seemed! John Battelle just quoted from the subpoena, the DoJ wanted "all queries that have been entered on your company' search engine between June 1, 2005 and July 31, 2005." I cannot BELIEVE they would ask for something like that. You think the DoJ just wants this information for a porn lawsuit? Think again. They'd come back the next day with another subpeona for all the IP Addresses that quiered for "suspect" keywords. What unbelievable bastards.