Seems reasonable, the restriction on installing AGPL stuff on your devices seems odd (how would that influence publicly deployed services?) but it mentions there's an approval process which makes it possible, so... Good enough?
There are many, many open source contributors at google and there is an entire group of people staffed to work on open source, among their responsibilities is to make it easy for google engineers to contribute to open source projects (both in their spare time and also as part of their daily work).