Judge, jury, and executioner as they say.
Why would Chrome being run a foundation that is funded overwhelmingly by Alphabet make a difference? Chromium is already public -- aren't there already forks that focus on privacy and ad blocking?
This is absolutely not about quality but a political move to counteract ad blocking extensions and companies. While the intent seems noble, it's likely to cause no real improvements compared to better existing options like not serving these formats at all.
The same reason every conflict of interest is a problem. You're not advocating for what's best for the side you are supposed to be representing because you are also representing a self interest.
(Also, imagine the hilarity if the default search of Chrome ever became Bing.)
Whenever you have the browser maker, and punitive actions controlled by the same party, and arbitrarily, its a recipe for disaster.
If Google really cared, they should spin Chrome off to a foundation, provide it a large amount of funding, and totally step aside.
Having the #1 web browser and the largest ad network, controlled by Google, even if you agree with what they are doing, is a recipe for disaster.
Google, of course, MUST protect its ad business, let's call his what it is.