This makes a lot of sense, the question though is whether or not Sundar can make a policy decision that Larry and Sergey disagree with. (not a business decision, but a policy like "bringing back bottled water" or something like that).
Were I still there, I would be wondering if there would be a quarterly "Alphabet LMT (Last Month, Today)" where people from all the letters could mingle and ask questions of Larry and Sergey.
It would provide both transparency for the conglomeration and a chance for people to compare notes about how things are done in the other business units.