Perhaps this measures capability of SpeedTest, not capability of Google :-)

Nope http://www.speedtest.net/result/1285238984.png

It says a distance of 1200 miles but a ping of just 3ms, which means they're breaking the law. Speed of light in a vacuum: 299.8km per millisecond.

No, the location is taken from the RWHOIS data which just happened to not list the IP's actual location.

Sorry, that 3ms ping suggests you are inside their network. Try getting that over the internet.

Incorrect, I've gotten pings of less than 1 millisecond from over the internet.

PING a152.g.akamai.net (204.0.5.50) 56(84) bytes of data. 64 bytes from 204.0.5.50: icmp_seq=1 ttl=59 time=0.852 ms

PING yahoo.com (209.191.122.70) 56(84) bytes of data. 64 bytes from ir1.fp.vip.mud.yahoo.com (209.191.122.70): icmp_seq=1 ttl=57 time=3.06 ms

PING google.com (74.125.73.104) 56(84) bytes of data. 64 bytes from tul01m01-in-f104.1e100.net (74.125.73.104): icmp_seq=1 ttl=55 time=8.38 ms

PING e3191.c.akamaiedge.net (184.86.157.15) 56(84) bytes of data. 64 bytes from a184-86-157-15.deploy.akamaitechnologies.com (184.86.157.15): icmp_seq=1 ttl=60 time=1.15 ms