While I see a polarization toward Google Analytics and Omniture SiteCatalyst in the web analytics market space, the strategy are radically different. Google Analytics will continue to enhance its product and offer more features, grabbing some Omniture market, but hurting much more the lower to mid-market solutions. Rumors of a long awaited Google API, more advanced segmentation and other features are surfacing. But ultimately, Google Analytics mission remains to sell ads, either through AdWords or AdSense.
Omniture is playing a different game, they are expanding their portfolio of solutions horizontally, slowly but surely building the infrastructure to commoditize the whole online optimization process. With the acquisition of Mercado, they are adding another poweful site search functionality, but also a very powerful ecommerce platform. It remains to see how it will cooperate with SiteSearch & Content, or if one of the two will be doomed to extinction, but when it comes to merchandising, onsite search can make the difference between survival and growth... or extinction under economical turmoil.
As a senior web architect I have worked on a couple ebusiness ecosystem overhaul, consolidating dozens of websites and repositionning outdated technologies on new platforms. At the time, if Omniture had offered the current CMS, Search, eCommerce, behavioral targeting & testing, Survey and call center/retail analytics, I would have seriously considered it as a viable solution to lower the technological aspect of website development and focus more on the online marketing optimization aspecs.