Google is in competition with a lot of other companies, and they've decided they're in a stronger position if they don't set off a firestorm of criticism that g

Google is in competition with a lot of other companies, and they've decided they're in a stronger position if they don't set off a firestorm of criticism that gives people an excuse to move to a different service. Even if you personally don't care about erotic pictures, if your grandma starts associating google with porn (because a case like this became high enough profile to get covered by the local news), and then you e-mail her from your google account, now you're having an uncomfortable conversation with your grandma. Or your wife or mother or sister or really conservative friend or whatever. Which isn't enough to make everyone leave, but it's enough to make some people leave, and pretty soon Bing or Yahoo would have bigger mindshare. It's a lot easier for Google to just say "ToS violation = deleted" and be done with it, and occasionally have to reverse a decision if there's too much fallout.