I definitely believe the agreement is necessary for Google to have regular access to its current channels looking forward (both across the net and especially with Android through Verizon). Yes, it is good for business.

There may be a huge outrage over it, but I tend to doubt it.

Furthermore, the anecdote "Sergey Brin did not want to cave to any of the Chinese demands to operate inside of mainland China, but Eric Schmidt talked him into it", if true, is pretty good evidence that the founders are more idealistic. I don't think that is patronizing.