Remember back in like 2005 when Google Video and YouTube were going at it? And how YouTube essentially won, only to be bought out by Google anyway? Me either, which is why Google Video being shut down doesn't surprise anyone.
Google Video has been something of a vestigial tail for Google for awhile now. After they acquired YouTube for $1.6 billion in the fall of 2006, the video search engine simply couldn't go anywhere. Users could no longer upload videos to the site by May 2009, even though existing videos worked fine. But really what was the point? Google Video was already cast aside by an unforgiving internet.
The email announcement states that the site will no longer host any videos as of April 29th. Google has invited their users to download their videos and upload them to YouTube to keep them alive if they haven't done so already. So all 5 of you who still watch anything on video.google.com, welcome to 2007. [TechCrunch]
Update: Google Video isn't totally dead, as YouTube says you can now migrate your Google Videos over to YouTube.