In my opinion creating panos for the web is no different from web design in general. There are lots of ways to get a free website for your business but it comes with cons. Free websites don't come with customizable domain names, mail accounts, etc. They also have limited customization capabilities, if you even know how to customize them.
On the other hand, there a lots and lots and lots of professional web design/development companies who create low/med/and high end websites on a large $ range.
Just because there is competition on the 'low' end market doesn't mean the end of custom panography, etc. It just means that the level of service must be higher than what google 'may' do for free. Creating high quality panos isn't well suited for high volume low cost in my opinion, especially with a small 1-5 man company.
So essentially, if panos are created by google, they will be the equivalent of a free website for your business as opposed to hiring and professional company to create a more customized and engaging experience.
Just my thoughts