There's obviously no inherent problem, but their reasoning is all theoretical and there's no reason not to expand it further based on their own logic. If you don't trust Google, why would you trust any of the other major players online like AWS, Azure, Cloudflare etc? Without those the internet basically doesn't work and you'd be better off not even bothering, thus meaning option 2 is the end result of the privacy minded.
> and there's no reason not to expand it further based on their own logic
And this is a textbook slippery slope argument. Also the clear difference between Google and the examples you've provided is the revenue model. The primary way Google makes money is selling user data to advertisers. next to social media sites, they're the most obvious targets for privacy-minded people.
It's a selfish attitude, but certainly a more realistic one for most people. Look at it this way: You enjoy eating meat, and aren't interested in giving that up for the benefit of others just like others aren't willing to give up their desire to have children for your benefit.
The mobile ad market is proof enough that the ad industry as a whole is terrible. Blocking ads on iOS and Android is harder for the average user than on Desktop, and it's abused to a ridiculous degree. Popups, redirects, trying to trick users into installing malicious apps, etc.
The ad industry had a second chance with mobile, and they showed they couldn't control themselves.
if I understand your statement, I think I agree. That's why I adjusted my comment to suggest banning only the governments of those nations, while allowing the private citizenry to continue to have access.
That would certainly be challenging to do, but I believe it would be possible.
Historically, I've found Google search borderline impossible to use via Tor because it'd usually give me an error page after solving the captcha. Occasionally you'll find a window where they're not nulling Tor IPs, but it's rarely worth the time.