They would have been right if Google marquee product was an Office Suite
Google was the AI company before AI companies were a thing. The comparison with Microsoft and IBM are misplaced because they failed to capture new territory; ML/AI is Google's stomping grounds. The criticism that Google is bad at consumer chatbots is true, but that's not where the real future value lays.
When the market keeps expanding, you don’t need to kill your predecessor. The shelf life for legacy enterprise computing is very long.