If Google was able to launch anything Bard related that someone could use -even if flawed- I think most people would call it a win. It would mean that Google takes it seriously but also has the tech on a shelf in a usable form. Google was understandably not worried about search until ChatGPT. Once the first whiff of search-replacement discussions happened in November, Google should have started scheduling a February release and prepped a plan. Or a marketing campaign warning about lying AIs or something real.
FWIW, I think it’s probably good that they didn’t release anything. If an AI search goes poorly, bing gets all the bad press. If it goes well, they can swoop in and say “now let the search engine you actually want do it”.