I think the latter scenario is why Google was so willing to go out of their way to appease the entrenched media conglomerates with their extrajudicial copyright

I think the latter scenario is why Google was so willing to go out of their way to appease the entrenched media conglomerates with their extrajudicial copyright enforcement. They want to get into licensing deals with the media oligopoly, and to do that they had to play ball by going above and far beyond the DMCA.