Google going in to China doesn't change anything in China itself. They will only be allowed back in under CCP-imposed terms. So I disagree that this is bad from that PoV.

The PoV where this does become bad is where we might see an influence in other markets seeing this capitulation by Google and then also requiring censorship in their terms. And not necessarily the Irans or NKs of the world, but the likes of India, Brazil, etc. who might see value in requiring some censorship.