To say they are bluffing would be speculative. They have a huge R&D IT tech division. No one can say for sure if they do or do not have a new system ready for testing that would sideline patent infringement.
Will it take time? Yes I've heard from some in the this field that it would take 1-2 years to prove itself worthy of implementing. If google is making billions off this Adwords and had to pay a whole 5% of 20.9% there would have to be at least that much improvement in profit to even consider a change IMO.
It would also have to be proven to be non-infringing. It has been said that they would have to start from scratch to completely get around patents.
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