Sure, there's something idyllic about the vision of a community driven by technology as a first-class citizen, but let's be real here: Google doesn't exist to make the world a better place, it exists to make money. Full stop. Some of what Google does may happen to improve quality of life for some, but they're also happy to do things like permanently lock people out of their accounts for TOS violations with no recourse, causing major disruptions some of for their users.
And then when they've decided that a project is no longer worth pursuing, they just kill it. How would you resolve the scenario where Google builds this smart city and then decides to bail on it? What happens to the people living there? Does the city of Toronto pick up the tab to keep it going? Google's mentality is fundamentally inconsistent with projects that require long-term stability, because not everything makes the kind of money that search ads do.
You really want that company dictating how the community should operate? I'll pass.
0: https://en.wikipedia.org/wiki/Company_town#History
edit: a word