It appeared to work by inspecting DNS packets and replying with overrides if necessary. I didn’t like it but I could understand that.
What I did not agree with was the fact that this also happened for other DNS services. Google DNS and OpenDNS both experienced the same issue, as did a few other “famous” DNS providers. Random little ones wouldn’t return the caching servers, and also enabling encrypted DNS for Google/OpenDNS would stop it happening too. I’m fairly sure it was some badly thought out deep packet inspection.
Also, I think that virtually every ISP with more than a few tens of thousands users is hosting a GGC instance nowadays (and a Netflix OpenCache, etc. etc.).
Nowadays, the vast majority of the transit&peering of ISPs is not going to the Internet, but to a few racks of local caching servers managed by OTT operators.
Bandwidth-wise, at least in prime time, the Internet is much less connected/realtime than people think :)
In fact, in many cases Google itself "suggests" to ISP that they host a few GGC servers.
They are directly monitored by Google, and the ISP has basically no say in how they are run. Capacity is managed by Google directly.