They could if they wanted to. They don't want to. There's no incentive for them to do it right - overreacting protects them from large lawsuits from people who

They could if they wanted to. They don't want to. There's no incentive for them to do it right - overreacting protects them from large lawsuits from people who can afford lawyers, and they don't care about anything else. If some innocent blogger gets their blog removed from the index - who cares, certainly not Google.