They used to recognize that long term it's better to make the decision that the users would want even if it's worse short term. The company was founded on this principle when Larry and Sergey tried to sell pagerank to Overature search (iirc) - the Overature ceo at the time said good results were bad because users would leave the 'portal' page too soon and not see enough ads. That's partly what lead to them creating their own company. [0]
I'd guess Google is making an Overature like mistake today. I guess it could also be failure to operate on stuff like this at scale, which also isn't great.
[0]: I'm pretty sure I'm remembering this from Levy's In The Plex, but I read it years ago so not 100% sure this is accurate.