> 1) does it though? It seems like the Google-specific parts of it are pretty ancillary to the whole experience
You're unwittingly describing the textbook definition of anticompetitive practices only made possible by abusing a dominant position.
> 2) how is it different to Apples integration with Safari?
Safari does not represent >65% of all web traffic. Also, there's the major liability of having a single ad company controlling the browser that the average internet user uses to browse the web.