Isn't that how they've always operated? Gmail was launched in 2004 and that sure wasn't a money-hose. But it did serve as yet another platform to support their money-hose since they could scan your emails and serve you ads.

It's really only a recent change to actually monetise Gmail beyond ads. They sell it as part of G Suite and as part of Google One. Not sure if Google One brings in the dough but surely G Suite makes enough to justify its existence.

I think they are quite shortsighted. The idea of running Google as a conglomerate, turning it into Alphabet, was good. But somehow, they have not been able to get rid of those layers of middle management that kill innovation. I've heard that Calico and other ventures are really political, and lot's of people that moved there hoping to do great work are quite frustrated.

Which is a shame, because they do have know how and technology to achieve great things. Just out of the protein folding results of this week you could spin off dozens of highly successful startups.