What was Google supposed to to? Show links to dead sites that don't load in the browser?
All other operational problems aside: Yes, I think that would be great! Let users know what their government is censoring.
Google already handles this with DMCA takedowns in the US. If you search a website that has been removed by DMCA, Google will notify you at the bottom of the screen. Telling the user that N number results are hidden because of censorship is probably a better approach.
And under some circumstances, it may quite literally be the most helpful result. If someone searches for Tiananmen Square, what they really need is a hint that it's time to switch to a VPN.
Users simply won't use Google if it's beating them with a stick to remind them that websites are censored and that users should use a VPN. Chinese citizens know about the censorship and most, outside of specific provinces, simply don't care. Those who do already use a VPN.
Another would be equal rights for women and ethnic minorities. I don't care if someone else's culture dictates that men should have legal control over their wives, or what have you—that's abhorrent, and human rights should be universal.
The false equivocation of protecting minority groups and human rights with "Should we notify of censorship in the results or the bottom of the screen?" is telling in this regard.
You have a underlying lack of understanding how censorship works. They don't just block websites. The Chinese government wants to filtering out results they don't like on accessible websites.