With a library you can continue to use it, and slowly rebuild your product to use a different library (or even use that library forever if it works for you), but with a web service it works 100% today and tomorrow it doesn't work at all.
http://raganwald.posterous.com/this-shit-still-happens-and-p...
At some point, we're all relying on APIs provided by somebody else. I think that's why it's so easy for people to ignore the pitfalls of just a little bit more.
This would 'self correct' folks who weren't doing the extra work.
However for things where there isn't really a credible way to come up with an alternative you are kind of screwed. But then it would become a Google problem if they didn't get API adoption without offering some sort of indemnification in the event they need to take it back.
I presume the 'translation abuse' is people using it to send spam in 141 different languages.
When you pay per request for access to an API, at a level that can make the provider as well as you profitable, you can have some comfort in the fact that if your provider goes down there will likely be a competitor to spring up in its place.
If your startup could survive if you switched off the API, then you're fine.
I don't see why NetFlix would have to be more paranoid about AWS, then say Apple about Foxconn. Business is business, except at Google.
Why are we still in this infatuation stage of ignoring the pitfalls of this?