How many customers are using Google Password Manager? How much revenue does it generate? What would it cost to add E2EE? How would it affect the UX? How much revenue would it generate? What projects would have to be de-prioritized to fund this work?
I agree, a password manager without E2EE is unusable in my eyes. However, I can also understand the institutional reasons this might be the case. I don't think it reflects an organizational aversion to E2EE.