In retrospect, the combination of "organize the world's data and make it universally accessible" and "make money selling ads" was always going to add up to "we are going to man-in-the-middle everything in the world."
And these days I wonder if "don't be evil" was primarily just a freakishly effective PR gambit to buy enough runway to grow to the point where regulatory countermeasures could not touch (or even keep pace) with the menace caused by that position.
I agree with the two points you just made. The gap between "wanting to do good" and "doing good" is filled with some excellent workplace safety, food safety, and chemical handling regulations, for instance.
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