Yeah, that kind of sucks. I liked a sibling suggestion that splitting off YouTube would make more sense because at least it could be a self-sustaining product.
Regardless, if the shareholders receiving stock in the a spun off company, so is not like their investment disappears. No one (should) care about some personified "Google" as if a particular corporate structure that happened to exist was actually a human being.
Also, Youtube prints an absurd amount of money, it isn't like this is some sort of change that is happening just at the moment that it finally making some money.