The LMHOSTS file is a file used by most implementations of TCP/IP protocol in the Windows and Linux and Unix world.
It overrides the standard DNS (Domain Name Service) resolution protocol and re-directs a named domain query to the address specified. 127.0.0.1 is YOUR computer.
That line added to your LMHOSTS file would prevent your computer from ever being able to get to Google again.
Google owns huge numbers of sites — you would have to block them all. For example, here is just a subset of the “doubleclick” sites:
# [Google / DoubleClick][AS15169][64.233.160.0 - 64.233.191.255]
127.0.0.1 m1.2mdn.net #[a509.cd.akamai.net]
127.0.0.1 rmcdn.2mdn.net
127.0.0.1 rmcdn.f.2mdn.net
127.0.0.1 n339.asp-cc.com
127.0.0.1 ads.cc-dt.com
127.0.0.1 clickserve.cc-dt.com
127.0.0.1 creative.cc-dt.com
127.0.0.1 clickserve.dartsearch.net
127.0.0.1 clickserve.eu.dartsearch.net
127.0.0.1 clickserve.uk.dartsearch.net
127.0.0.1 doubleclick.net #[McAfee.Cookie-Doubleclick]
127.0.0.1 ad.doubleclick.net #[MVPS.Criteria]
127.0.0.1 ad-g.doubleclick.net
127.0.0.1 ad2.doubleclick.net
127.0.0.1 ad.ae.doubleclick.net
127.0.0.1 ad.ar.doubleclick.net
127.0.0.1 ad.at.doubleclick.net
127.0.0.1 ad.au.doubleclick.net
127.0.0.1 ad.be.doubleclick.net
127.0.0.1 ad.br.doubleclick.net
127.0.0.1 ad.ca.doubleclick.net
127.0.0.1 ad.ch.doubleclick.net
127.0.0.1 ad.cl.doubleclick.net
127.0.0.1 ad.cn.doubleclick.net
127.0.0.1 ad.de.doubleclick.net #[Tracking.Cookie]
127.0.0.1 ad.dk.doubleclick.net
127.0.0.1 ad.es.doubleclick.net
127.0.0.1 ad.fi.doubleclick.net
127.0.0.1 ad.fr.doubleclick.net
127.0.0.1 ad.gr.doubleclick.net
127.0.0.1 ad.hk.doubleclick.net
127.0.0.1 ad.hr.doubleclick.net
127.0.0.1 ad.hu.doubleclick.net
127.0.0.1 ad.ie.doubleclick.net
127.0.0.1 ad.in.doubleclick.net
127.0.0.1 ad.jp.doubleclick.net
127.0.0.1 ad.kr.doubleclick.net
127.0.0.1 ad.it.doubleclick.net
127.0.0.1 ad.nl.doubleclick.net
127.0.0.1 ad.no.doubleclick.net
127.0.0.1 ad.nz.doubleclick.net
127.0.0.1 ad.pl.doubleclick.net
127.0.0.1 ad.pt.doubleclick.net
127.0.0.1 ad.ro.doubleclick.net
127.0.0.1 ad.ru.doubleclick.net
127.0.0.1 ad.se.doubleclick.net
127.0.0.1 ad.sg.doubleclick.net
127.0.0.1 ad.si.doubleclick.net
127.0.0.1 ad.terra.doubleclick.net
127.0.0.1 ad.th.doubleclick.net
127.0.0.1 ad.tw.doubleclick.net
127.0.0.1 ad.uk.doubleclick.net
127.0.0.1 ad.us.doubleclick.net
127.0.0.1 ad.za.doubleclick.net
127.0.0.1 ad.n2434.doubleclick.net
127.0.0.1 ad-emea.doubleclick.net
127.0.0.1 creatives.doubleclick.net
127.0.0.1 dfp.doubleclick.net
127.0.0.1 feedads.g.doubleclick.net
127.0.0.1 fls.doubleclick.net
127.0.0.1 fls.uk.doubleclick.net
127.0.0.1 googleads.g.doubleclick.net #[pagead-dclk.l.google.com]
127.0.0.1 ir.doubleclick.net
127.0.0.1 iv.doubleclick.net
127.0.0.1 m.doubleclick.net
127.0.0.1 motifcdn.doubleclick.net
127.0.0.1 motifcdn2.doubleclick.net
127.0.0.1 n4052ad.doubleclick.net
127.0.0.1 n4403ad.doubleclick.net
127.0.0.1 n479ad.doubleclick.net
127.0.0.1 optout.doubleclick.net
127.0.0.1 paypalssl.doubleclick.net
127.0.0.1 pubads.g.doubleclick.net
127.0.0.1 s2.video.doubleclick.net
127.0.0.1 doubleclick.ne.jp
127.0.0.1 www3.doubleclick.net
127.0.0.1 www.doubleclick.net
127.0.0.1 doubleclick.com
127.0.0.1 www2.doubleclick.com
127.0.0.1 www3.doubleclick.com
127.0.0.1 www.doubleclick.com
127.0.0.1 tpc.googlesyndication.com
# 127.0.0.1 www.youtube-nocookie.com #[affects various videos]
# [Google / DoubleClick][AS15169][66.249.64.0 - 66.249.95.255]
127.0.0.1 ad.rs.doubleclick.net
# [Google / DoubleClick][AS15169][72.14.192.0 - 72.14.255.255]
127.0.0.1 code.adtlgc.com
127.0.0.1 keywords.adtlgc.com
127.0.0.1 svd2.adtlgc.com
127.0.0.1 affiliate.2mdn.net
127.0.0.1 s0.2mdn.net
# 127.0.0.1 static.2mdn.net #[affects Youtube]
127.0.0.1 clickserve.us2.dartsearch.net #[www3.l.google.com]
127.0.0.1 ad-apac.doubleclick.net
127.0.0.1 ad.mo.doubleclick.net
127.0.0.1 adclick.g.doubleclick.net
127.0.0.1 gan.doubleclick.net
127.0.0.1 gdfp.g.doubleclick.net
127.0.0.1 googleads2.g.doubleclick.net
127.0.0.1 n4061ad.hk.doubleclick.net
127.0.0.1 securepubads.g.doubleclick.net
# [Google / DoubleClick][AS15169][74.125.0.0 - 74.125.255.255]
127.0.0.1 ad.bg.doubleclick.net
127.0.0.1 cm.g.doubleclick.net
127.0.0.1 log2.quintelligence.com
# [Google / DoubleClick][AS6432][216.73.80.0 - 216.73.95.255]
127.0.0.1 www.destinationurl.com
127.0.0.1 doubleclick.shockwave.com
127.0.0.1 www3.webhostingtalk.com #[ad.3ad.doubleclick.net]