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I'd say by being the largest referrer on the internet and the developer of one of the most popular web browser, Google certainly has an excellent case to "police" the internet. If you don't want Google's advice, don't use Google's kit.

As a HN user you're most likely able to take care of yourself, but the vast majority of people are better off heeding Google's advice.

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Google's "advice" in this case is a statement issued to millions of users accusing a competitor of a crime.

If it turns out to be true, that's fine. If it's not true, don't you think Google should be held responsible for the damage to their competitor's reputation?

Twitpic isn't a Google competitor and was not being accused of a crime.

I don't see how you reach that conclusion.

Twitpic is part of the Twitter ecosystem and is such is certainly competitive with Google's social and photo sharing efforts (i.e. Google+ and Picasa)

Being a known distributor of malware (described by Google as: software which causes things like identity theft, financial loss, and permanent file deletion) is a crime.

So yes, they are a competitor, and yes they are being accused of a crime.

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