The real innovation at Google is internal and invisible to you -- often secret, maybe kind of boring, but totally transformational. It's infrastructure and its support. And all those moonshot things and stuff were mainly PR, sideshows, and not the primary focus of the company's brains.
And they ke thing is Google doesn't/didn't have to be productive" for these moonshot types of projects. As a % of headcount they are fairly low, even. The real money comes from ads ads ads and always will. The rest (non-ads/non-search) of the company is there to capture SWE headcount from the rest of the industry, not to produce monetary value for Google. The ad revenue firehose is so incredible that it was inevitable it would turn into a swamp of misused potential like you describe.
The real innovation in Google is the stuff that people on this forum don't see. Because it's mostly secret or invisible. It's giant data centres using a pile of custom technology to eek out massive throughput, more fiber and Internet backbone than you can imagine. And the SREs and ops people who keep all this stuff running.
All to keep that firehose running. The rest is all sideshow. I was a SWE at Google, but the real talent there is SRE and infra development.