Yes, google has no excuse not to know better. They did know better in fact, it's a selling point of their competing product. Corporations their size will typically run anything remotely important in house on their own machines so that they have control over it for exactly this sort of reason. Failing that they'll put contracts in place that specify notification periods and remediation steps so that the rug can't be pulled out from under them. Google knew this could happen and went ahead anyway, they accepted the risk and now they have to accept the consequences.
And let's not forget that google weren't working with apple, they were working around them.
I think you're mistaking what happened here. Google apparently broke the TOS which led to this issue.
This isn't a single person choosing differently. Employees and consumers buy and use iphones and Google has no choice in avoiding them. Doing so will only hurt their business, and they don't exactly have the leverage to demand whatever APIs and access they want.
And let's not forget that google weren't working with apple, they were working around them.