"Knol" could serve as a competition to rest of the independent information/article sites. People would favor google articles over other sites. Knol could drive traffic away from your site.
This all just speculation but I'm not really sure how it would work. Right now, you can't find in-depth information on wikipedia on every topic therefore its not so much of a completion with other sites. If google create a system where a user can find anything and everything about any topic then there be no need for searching around.
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