Why should Google risk their brand reputation in this way? The majority of their users probably have never heard of ChatGPT. They just know Google as the thing that gives them factual information. Google have something to lose by directing their enormous user base to a buggy ChatGPT clone.
Bing isn't unpopular, it's just a non-entity. They don't have any brand value to harm.
> that can quickly be iterated on.
It's pretty dubious to assume problems with this tech can be fixed on a short time scale