This sounds sane to me. I don't think people in general have a good understanding of how these generative AI products produce their answers, and I think many would assume hallucinated information to be true.
This is bad in all cases, but certainly misinformation in the democratic process is up there with the worst. Of course, perhaps more importantly for Google, it's a PR disaster waiting to happen when Gemini starts touting incorrect information seemingly supporting one political party or another.