As a shareholder, I think that not making as much money as possible is the real evil here. I always interpreted "don't be evil" as "don't waste money building an aquarium for sharks with lasers on their heads". I never in my darkest nightmares thought it meant "shut down profitable centers of corporate growth just because some bleeding hearts say that it's bad to pollute developing countries with planned obsolescent e-waste."
Of all the massive cash fires at Google (Cloud) you’re concerned about the shark photonics lab? That one might actually pay off some day with meaningful improvements in marine fiber optic cables. Given how important deep sea optics are for Google’s core business it is a negligible cost with a huge upside.