You just need to select (check) the "Convert text from PDF or image files to Google Docs documents" before you upload your PDF file.
The only downside is that Google limits the file size to 1Mb. You can also subscribe to Google Docs for Business at USD50 per year for uploading larger files... definitely cheaper than my Apple MobileMe account...
Check out below "upload file" screenshot ...
Below link from Google on the latest feature on Google Docs
For those interested to get Google Docs for Business check out below: