Google's argument is that a proper cafeteria on campus means you don't have to lose time leaving the campus to get something to eat, so you can make better use of whatever break time you take. Means you can get back to work faster while having more time to rest and not need to rush your meal. It also gives employees a chance to socialize outside of the work areas, and meetings held over lunch are pretty common. (And it's good food, so even though you CAN go off site, why would you WANT to?) All in all, it's a win for everyone.
To be honest, I miss working there. My reasons for not staying are still valid, and it sounds like the company has changed for the worse in the two years since I left, but it's a part of my life that I'll always remember.
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