I can attest to this; worked there from mid 2000s to early 2010s. Principle Engineers, L7 ICs, were looked up as Gods back then. To an extent that a couple of projects by an L5 where it went through principal-review process was almost guaranteed to get them a promotion to L6. Back when I was there I thought pulling off L5-L6 required crazy work schedule (I couldn't so didn't) and L7 was well and truly beyond mortals.
But now I hear they are doling out L7s like candy as they are getting increasingly desperate to fill their open head counts. How times change!
In the AF, your performance reviews need to be "firewalled" or it's time to leave.
What does firewalling a performance review mean?
Levels.fyi doesn't seem to agree with your title inflation evaluation: https://www.levels.fyi/?compare=Google,Amazon,Microsoft&trac...
It's only 3 data points, but it seems that Amazon Senior is comparable to Google senior, and it's Microsoft that inflates the Senior title.
Gist: "junior" L6 SDE is more like Google L5, "senior" L6 SDE tracks mostly with Google L6 (or even L7 in rare cases).
I think it's more like Google junior L6 SDE is equivalent Uber L4.5, which itself is about the same as senior AA at Oracle (= like a L11 at Twitter).