Google admitted as much at the time. But today, they've announced that the issues have been fixed. Windows Desktop Search now works, and users can control how the archiving operates. For those who continued to use the completely dysfunctional version, Google will save you from yourself by automatically updating to the current release.
The ProblemThe most serious problem with the Google Apps Sync was that it interfered with Windows Desktop Search, making all Outlook data (not just what was synchronized with Gmail) completely inaccessible to indexing and thus making your email a complete quagmire.
The FixTo fix this, Google says they "worked closely with Microsoft," to make sure both the Desktop Search and the standard Outlook search play nicely with the plugin.
In what looks like an attempt to appease Microsoft more than anything else, they also have taken steps to make crystal clear where data is being stored, and making autoarchiving something users can control. In addition to the fix, Google threw a lifeline to those still stuck in 1996 with support for access to Windows Live Hotmail via the Outlook Connector plugin.