> ... including terminating your account or ability to use Drive.
I think that the controversial part is that the file was deleted. I'd find it surprising if some file from my Drive is just deleted instead of restricting public access or using another form of enforcing the policy.
Question is this a paid google storage / CDN account? That would be different. It sounds like this is bog standard gdrive.
I understand if they give a safebrowsing warning that the document contains potential misinformation, like for sites with potential malware. Blocking is not the right way to solve it. Censorship is always abused, in the end.