The part that's biting them is that now that they're 100,000 people, creativity is wasted anyway, because any brilliant new product idea will get killed long before launch and if it doesn't it'll probably catastrophically damage Google's brand. So the upside of this cultural decision is worthless to them, and the downside is incredibly chaotic and difficult to manage.
I think we'll see a shift away from this at Google, but I think other startups will still consciously embrace it. When you're 10 people and are about to go out of business if you don't come up with a brilliant idea, your incentives are dramatically different from when you're 100,000 and make tens of billions from your existing business lines every quarter.