If users feel they get the best results from Google then they continue to use Google which drives search and ad impressions. Ads are also clearly labelled so users can decide if they want to ignore sponsored results. I typically click the first result below ads or use an adblocker but that's just me. So this seems like a clear distinction between paid and organic results.

I completely agree on the second point. Google's 'Featured Snippets' are a clear overreach where Google uses people's content at no cost and gives nothing in return. This needs to be regulated because nobody is going to opt-out. For example, I've had some featured snippets and they bring a lot of traffic. Much less than a normal first place listing but more than a second place listing. If I opt-out of Featured Snippets in protest then someone else will just happily take that spot.

Perhaps the balance lies in just indexing headlines of sites. Then publishers could decide if they want to give up that information in their headlines. It's a tough to know where to draw the line but that seems like it's been the fairest balance so far.