Seems like hyperbole.
Probably literally no one is offended to the point that they will never trust google again by this.
People seem determined to believe that google will fail and want google to fail; and they may; but this won’t cause it.
It’ll just be a wave in the ocean.
People have short memories.
In 6 months no one will even care; there will some other new drama to complain about.
Someone else who was directing me in a car via their mobile google maps told me to go through a blocked road. I said no, I cannot. "But you have to, google says so"
No, I still did not drive through a road block, despite google telling me, this is the way, but people trusted google a lot. And still do.
How many people will have visited Gemini the first time today just to try out the "biased image generator"?
There's a good chance some may stick.
The issue will be forgotten in a few days and then the next current thing comes.
How many people will never again trust Google's AI because they know Google is eager to bias the results? Competitors are already pointing out that their models don't make those mistakes, so you should use them instead. Then there's the news about the original Gemini demo being faked too.
This seems more likely to kill the product than help it.