Google will realize this when a) people pay for them and/or b) people start leaving the platform.
There are options for paid, supported email, like Fastmail and others. They probably have .01% of the userbase Google does.
Gmail is just as valuable to Google as it is to any individual user. I'm not sure why people's gmail accounts would ever be banned. If people do something illegal, prosecute them. Even if they're found guilty, it's not like the court is going to delete their email address or take away where they live.
This feels like an episode of Black Mirror.
Probably much harder to litigate than criminal activity, so I can vaguely understand the use of banhammers, even if they were clearly unwarranted in this case.
also, gmail. Google Apps has paid support that you can call and talk to to get problems resolved.