Not working yet for me. I wonder if Google pushes decrements to the unread counter? E.g.: I get an email, my phone receives a push notification, the Google app counter is set to 1, and I read the email in Safari (or wherever). Will they push another notification to set the counter back to 0. If not the small bit of OCD in me will trigger and I'll go back to the Mail app. - Benjamin Golub

Awesome, they do decrement the counter as the read state changes - Benjamin Golub