Would you prefer a monopoly where only Williams Sonoma can advertise on WS keywords? I’m sure if you wanted to start a little premium homewares brand you’d feel differently. Bidding on competitor keywords allows small and big brands to compete for the same transactions, and allows brands to introduce alternatives to customers who might only have one giant brand top of mind.
Defensive branded search is generally only a fraction of budget anyway. I don’t find this practice the least bit onerous or extractive from Google — they’re just allowing for competition, as they should.