It's called confirmation bias. They are looking for positive evidence confirming how awesome they are and are blind to evidence of the contrary. Not only are they blind but they seem genuinely confused why people are disagreeing with them so much. From the outside this is an obvious PR disaster. It shouldn't need debating. It's that bad.

I imagine the internal mailing lists are going to be a fun read the next few days. I was on similar mailing lists in Nokia when the iphone launched. I'll spare you the details but Nokia suffered from a similarly bad case of confirmation bias and it was decision making based on that in the years before and after that ultimately led to them getting out of the phone business entirely a mere 7 years after being the dominant market leader (and not by any small margin). Confirmation bias kills companies.

Anyone from Google/alphabet still capable of making a difference reading this, here's some free advice: sort out your management ASAP. This is one of those issues that stems from a lack of leadership. Heads need to roll, especially the ones doing too much nodding. I'd start at the top. I've had my doubts about the current CEO for a while. Too invisible and stuff like this keeps happening on his watch. Also the product portfolio seems a mess lately. There's something wrong there and current leadership is part of the problem.