Too many small publishers are not good. The small publishers which gain revenue because of Google are too dependent on it. Hence they cannot criticize Google else indirectly their SEO is affected. Larger independent publishers have to compete with smaller clickbaity non professional publishers and also have to serve clickbait. Because Ad revenue is mostly a zero sum game. The smaller publishers who do not have many journalists just make clickbait titles eat into professionals who are also dependent on Ads.

It is in Google's interest to have multiple small publishers instead of few large publishers, because Google can blackmail the smaller ones more easily and multiple publisher speaking against something is more difficult then few grouped publishers.

If the publishers and Google's interest clash, it is a good thing for the readers. If they align, it is a very good thing for Google, a little good for publishers and bad for readers.