Google Gets Physical in the Local/Mobile Race

Sources are saying that Google is planning on distributing mobile devices to local businesses to allow users to check-in and rate the business. If it is true, this bold maneuver could go either way. My initial thoughts…

• Are there better ways for Google to spend the same budget to inspire mobile users to interact with these local businesses?
• What will businesses do when they start getting negative ratings? Remove the devices? So ratings will be skewed?
• How will they choose which businesses get these devices? Large chains with enough traffic to drive the most interaction and content, leaving small mom and pops in the dust?