Call it what you like. They're effectively punishing their own users because they don't like a 3rd party service.

Those users, however, clearly do like that 3rd party service, and would just like to get on with setting up their account there.

Any action at all by Google during that process (other than the expected one) just makes things worse for their users. The adult thing to do, then, is to simply not do anything to make matters worse.