However regarding its current implementation, I don't necessarily agree with the fact that private entities are the one judging the requests (and they never asked for it!). If it is some sort of legal requirement, in my opinion, it should be reviewed by some kind of judge, administrative body or peers, that would apply consistently the rules.
Finally regarding the EU vs Global application of the rule, I have to side with Google : you can't comply globally with every specific request from every country or sensibility, because it would mean banning a lot of things (from blasphemy, homosexuality to various disputed historical events, or territories...). I can't see that working practically.