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I have to say, google domains is about the only case where I have had responsiveness from google support. And it is a concern to me... I think that if google does such a thing it would be easy enough to demonstrate real damages in a lawsuit against google.

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Sure you could probably win a lawsuit. However what about the lost business you will incur until the lawsuit is done and Google decides to follow the court order?

See the part about "real damages." In a case, as such you could demonstrate the impact and estimate ongoing damages as a result of googles (in)action. Given the offset in size and likely irresponsible nature the amount google would have to pay would include your damages, lawyer fees as well as additional punitive damages. This is how common law is supposed to work.

NOTE: I am not a lawyer, and this is not legal advice.

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