A lot of people would have been very pissed off, even though it said 'beta'.
Them shutting it down in 2005 or 2006 would have been annoying or disappointing like the shutdown of Google Wave but understandable.
It's all about brand expectations. Google is synonymous with unreliability because they don't have another brand to shoulder that association. It used to be "Beta" but no longer.
A big problem is that nobody believes their designations anyway. GMail was in beta for years when it was obviously a mature product, while "Of course we're investing a ton in Stadia..." only to shut it down a couple months later.
Sure, go ahead. But the market will take notice if you do that.
If they had removed the beta label sooner, they might have attracted businesses to GSuite sooner?
It’s a fine line to walk: you want to iterate quickly on one hand but some users need stability on the other.