I believe you're just pinging the internal interface of the router that connects you to the internet (because it was the first hop in your traceroute to google), which means your echo requests (and 192.168.254.254's replies) are never leaving your local LAN. It's when you try to ping something outside of your LAN that something goes wrong, and my guess is that that router is the culprit. It may have a built in firewall that's stomping on icmp. If you can get the model number from it, one might google it. Or you could just type http://192.168.254.254 into a web browser and see what you get.