Google shouldn't be the arbiter of what's ok or not on the internet. They use AI to take away all human recourse with the company but want to tell others not to use it? It's a pretty laughable position. Good luck trying to detect GPT-3 and the like when you compare with non native speakers of languages. Are you suddenly going to just block them too?
If an AI can generate high quality content, why is that any less than human generated content. Human generate a ton of trash content, it's not inherently better.
Those same models on copilot are generating useful and often good code for me on a daily basis. If someone told me it's not OK to use any copilot generated code as unethical/wrong I'd laugh in their face. It's basically saving me a google search to find snippets/examples of things I wasn't sure of.
Maybe that's the threat? If we have access to AI directly (ala copilot) then I am googling less.