Mike Arrington believes that Google reporting apps don't support download to Google Spreadsheets because of "an obvious lack of conversations internally".
I'm in a unique position to comment on this, since I work on advertiser-facing reporting for AdWords (and have been for about six months). And Mike's right, we don't let you open your report data directly in Google Spreadsheets yet. But it's not because the AdWords reports team is unaware of Google Spreadsheets -- I've known that entire team from the first week they joined Google, and Fuzzy (the Tech Lead) and I are friends. We talk about what's going on with Spreadsheets all the time, and we've talked about incorporating it into the AdWords Report Center. Our offices are about 100 feet away from each other. We see each other at the coffee machine all the time.
The only problem is, Spreadsheets integration is in line behind about 30 other revenue-impacting features that hundreds of thousands of advertisers want first. And it's behind those other features because thoughtful people working hard to meet the needs of our advertisers have decided that such an integration is not a top priority.
Mike: please don't pretend that you can diagnose the root cause of a missing feature from the TechCrunch Ranch.
Engineers at Google have a raw technical curiosity that is expressed in frequent conversations about other teams and other projects. No one would say they know about everything going on, but engineers here, especially the best ones, tend to know A LOT about other projects throughout a variety of areas of the company.