Good, I license much of my open source software under the AGPL because of how easily bad actors are able to scare themselves with FUD about the license. I want companies who don't understand the licens to be afraid of simply taking without giving back.

That said, most of fear around the AGPL is nonsense, and there are plenty of companies and contributors who understand the license and adhere to the terms AGPL software ships under. If Google wants to limit their options, while smaller competitors get a leg up by understanding and using their AGPL options, that's good for the market.