The problem is that when Google took a stance against censorship, users behind the Great Firewall or other censorship regimes knew that if they managed to reach www.google.com through VPN or other means they were getting uncensored results. Now, no one will ever know whether they are seeing the 'real' Google or not.
Google is one of the most advanced companies at geoblocking their services. You can't just hop on a VPN and access US-only Google services from, say, a French account. Google knows where you live, where you work, where you bank, who you're dating. This raises the spectre of Chinese censorship policies being applied even to queries coming from outside of the Great Firewall from accounts that have been deemed 'Chinese'.
If you think 'they would never do that', just look at how quickly US business folded in the dispute with Beijing over acknowledging Taiwan as a country. Once you have business interests in China that can be held hostage, you're all in the way.