If Google wasn't dumping prices this way there would already be great alternative services that provide this, but it's hard for someone else to have a selling point when there's a huge conglomerate basically providing this service for free.
I would say generally I am happy where this is going. The more Google makes decisions like these the more opportunities there are for customers to learn what they are actually "paying" for and they would be more willing to give away money for a better service.