Whereas, as you suggest, Google's cloud strategy has been marginal except for Google Docs and they're still mostly an ad company.
Are you sure? This feels a little bit like when I read the American capitalism is going to collapse because there are a lot of homeless people. Just because something has the effect of making some people miserable doesn't mean that it's unstable or doomed to fail. IBM, GE, Boeing, or any number of other "dinosaur" companies haven't gone anywhere. And Microsoft itself shows that even a conservative culture can manage to adapt to changing circumstances when it's necessary.
So perhaps such a conservative culture does have its merits, but claiming that Google sought those merits is post-facto rationalization of their failure to innovate. Google never intended to turn into IBM (which, btw, they havent - at least IBM has more diversified sources of revenue!).
That said, you make a good point that Microsoft itself is a counterexample. So maybe there is still hope for Google. But IMO, that hope is not aligned with the path they're currently traveling. They need to fire Sundar and make some drastic cultural changes if they want to outcompete Microsoft between now and 2035.
But yes, Google is a money printer, and it's printing at a higher speed than it was ten years ago. But in that same ten years, Microsoft has grown at a faster rate and even displaced Google in some areas, like developer tooling and AI. In fact, Google has lost its ability to innovate to such an extent that a startup was able to beat them to market by productizing research that originated from Google! And now Microsoft basically owns that startup. That's an embarrassing failure of leadership.