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Feedback has done great things for Google Sites, like page-permissions. Take a moment.
Column Widths - The sidebar page templates are often too small. This would allow for more interesting layouts.
Premium Templates - let designers like myself sell our work, like wordpress.
Dedicated Footer Background - with ability to span browser width.
Horizontal Navigation Padding Toggle - I want to be able to bring an image flush to the navigation bar.
Better Gadgets Community - a better database, organization, top / popular / high-rated gadgets. Unappealing is the gadget system, which is lack luster compared to Wordpress or other competitors. Finding solid plugins is a frustration.
Background Image Rendering - If you use background image as a header background it doesn't properly render (appears higher) when logged into the Google Site.