Shouldn't it scare away customers that a company will only do business with them if they cannot be held in court for misdeeds regarding that business? I sadly understand that consumers don't read the fine print. But really, this clause should be treated as a dealbreaker.
Beyond that, your other options will also usually include arbitration clauses. If it's a deal-breaker for choosing Google, it'll be a deal-breaker for choosing anyone else.
Maybe it should be, but it isn't. Google probably doesn't care about losing the three tenths of one thousandth of a percent of customers who will 1) read the terms and 2) care enough about the arbitration clause to abandon ship.