Backup key security is compromised by usability concerns (the need to restore the backup to a new phone without the old one).
https://blog.elcomsoft.com/2018/01/extract-and-decrypt-whats...
In any case you are right that if you can restore an "encrypted" backup onto a fresh phone without any info from the old one, then all the bits necessary to do are held by parties who can be legally compelled to give them up.
No special skills needed except running locating the file, running a command and connecting using SQLite or something.
Hence, it is reasonable to apply any distinction to the content as a user of Google Drive sees it, and not as it may be stored on the backend. Hence, if the data WhatsApp pushes to the Google Drive API is unencrypted (and we're talking about the data, not about the HTTPS-encapsulated form that passes over the network), it is reasonable to call it "in clear text", and it wouldn't be reasonable to call it encrypted.
They would not be able to recover your data upon requesting a password reset, if they used proper end-to-end-encryption.
For instance, WhatsApp on Android will happily back up to Google Drive, if you allow it, and it does so in cleartext.