What you focus on can also help you attract a certain type of employee. The best engineers I know want to work on interesting problems. I know plenty of people (myself included) that took pretty drastic pay cuts to work in a more interesting space. To be fair, we were all making above our needs at the time, but the point remains, good engineers care a lot about the things they working on.
As a company becomes successful, they should share the gains with those that helped get them there. But no firm is completely closed, it has to attract new people. And the sell to new employees often overly focuses on money and perks.
The other problem I see is that companies can fall into the trap of focusing too much on inner reflection and feedback. This leads to a lot of heavy handed happiness initiatives that end up just being chores (e.g. forced team bonding, endless happiness surveys, feedback, etc). I can't speak for non-technical employees, but in my experience the best engineers care most about an interesting product space, autonomy and respect. And colleagues matter as well. So even if you have all this, if your values aren't shared by your peers, its a big negative. For instance, if your peers are more interested in advancing politics at work or exploiting perks, it will create tension with those that just want to do meaningful work.
So I think Google's shift is a net positive. Sure it'll upset some employees that care more about catering, travel and perks than their actual work, but that's fine.