I believe you, and I do turn to an LLM over Google for some queries where I'm not concerned about hallucination. (I use Llama 3 most of the time, because the privacy is absolute.)
But OpenAI is having a hard time retaining/increasing ChatGPT users. Also, Alphabet's stock is about as valuable as it's ever been. So I don't think we have evidence that this is really challenging Google's search dominance.
Google is an ad company. Ad prices are on an auction and most companies believe that they need ads. Less customers don't necessarily mean that the earnings go down, as when the clicks go down the prices might go up (without ad competitors). Ergo, they don't compete (yet at least).
