"Is it worth it for google to send their legal team to some small claims court hearing instead of just unblocking the site?"
And contrary to the popular belief, suing people really isn't that expensive if you've got the time to do it.
As with most of similar systems (spamhaus etc) the people running them are just as bad as the people they're trying to stop.
That seems to be how Google is (successfully) using it.
Here the issue is that Google is making direct, verbal claims about other sites. That's not to say Google couldn't come up with a strategy to win in court, but the strategy would have to differ markedly.
edit: i dun read gud. leaving comment as an homage to lack of literacy