Seems like Google Analytics was more popular than the folk over at Google had originally forecasted with Google temporarily suspending any new sign ups to their new free web analytics service.
The announcement which initially threw the web analytics market into disarray seems to have its impact slightly softened by this temporary suspension of new sign ups. Also, many existing web analytics providers will want to investigate the Google Analytics service further to compare the features with their existing service.
If you have an e-commerce site for example, data can take up to 6 hours to flow into your account and for someone which looks at their web analytics data several times/day, this lag can be quite irritating.
For this reason if you do spend hundreds or thousand of dollars per month on Google Adwords, it may not be a bad idea to have an independent company providing the results of how those ads perform at a comparatively small cost. HitsLink for example can provide such a service and offers real time reporting so you know within seconds from which campaign a sale had originated from.
If you want to begin measuring what is and is not working for you, you may register for a free 30 day trial here.