Today looking though my google search history, I noticed that each clicked link has a star (“bookmark this”) next to it. I am not sure when this was introduced but it goes a long way towards making Google bookmarks a replacement for Lookmarks. Since most bookmarks are ultimately the result of a Google search, this is a very convenient feature.
I haven’t looked at Google bookmarks in a while, but I now see RSS feeds by tag. All that Google needs to do to create personalized Web search bliss is tie in Google bookmarks with Google Reader (bookmark posts or allow add tagged posts to a bookmark feed), and establish a permissions model for sharing items with friends. At their current rate, it should only take about 2 more years.