Google had no choice, really. The types of censorship that information providers have had to subject themselves to makes Google's continued stay in China against their principles.
Will they stay though? I think the answer is yes, just based on the size of the Chinese market.
So all in all, Google will not walk away from China. Money talks...
More businesses and governments (especially the US government) will have to get comfortable with China's repressive practices and policies in the coming years due to their becoming the #1 economic superpower in the next 1-2 decades.