A very interesting take indeed. I don't know how comments here have morphed into AI Bashing but my honest take:
What google has done is self-preservation not declaring a war on creativity. They were ahead of everyone else on AI but they didn't reinvent "google" because it was unprofitable. Selling prime search slots which get clicked is far more money making than having most searches die at the AI summary (most of mine do). This is a hat tip to ChatGPT and Google's way of saying your UX is better than ours was. Let's offer a mix and see what we can salvage - both in revenue and users.
In the long-term the corporate will have to look at alternate revenue streams and their forays into chip etc. are clear indicators of the same.
I know it hurts us (read creators - I'm happy cowriting with AI) but Google is being true its shareholders and to its goal of making money and we can't blame them for it.