Small claims isn't always a cake walk. The defendant can pay to upgrade to general division, turning the somewhat informal case into a full-fledged case.

Small claims and certainly general courts are often (and I think in this case) more about getting the attention of a big company than actually winning. Is google really going to send a representative and lawyer to fight you in either small claims or general over disabling your adwords account when any sane review would conclude that they are wrong? They will 99% just turn it back on. This isn't solving the larger systemic problem here but probably is a great way to get your account reenabled.