I see this argument repeated many times, X is bad so we must never do X. Any company that does X is bad no matter what. This completely ignores the other side of the story. What is the consequence of not doing X? Censorship is incredibly dangerous tool, but that does not mean it must never be used. At some point the cost of inaction is too high. In this case not taking action could be construed as Google enabling systemic racism.

Of course the above is simplistic. For one I don't know if alternative action existed that would not set a precedent of censorship.