I have met a lot of people in my career who are motivated to do work for the public good in order for the whole world to benefit (e.g., standards, open source, public speaking/education etc.) and not just one company. I met the vast majority of those people after I joined Google, and many of the others had previously worked at Google.
As a lowly engineer, it is difficult for me to speculate about the true motivations of upper management. But, I do feel confident saying that I work alongside a lot of people who are not motivated by evil or "embrace, extend, extinguish" mentality. My colleagues have good intentions, and they act on them.
That said, Google is a big place. It's so big that usually I only hear about user-hostile things like this from the news. I personally find it demotivating and sad, because it undermines the good work that I know is being done elsewhere in the company. It seems like the latest in a long string of incidents, and it probably won't be the last.
So, take that for what you will. But, please also consider that it may not be as binary good/evil as you make it sound.