Sure - I'm advocating that more cities should grow to the point that it is a drop in the bucket, by inviting not only Google but other companies and not treating any of them as special.

Or, sure, they can decide that being a 100K-person town is what they want their city to be, and use zoning to actively resist any single employer having over 1K people in the town. But this isn't a Google-specific problem, and if you try to address it with Google-specific solutions (either "Take special measures to invite Google because they'll bring in high-paying jobs" or "Take special measures to exclude Google because they'll destroy your city"), you'll be in trouble when some other, possibly non-tech, employer comes along in the future.