That's a simpler explanation but one that I think misses the point completely. A huge reason "Google is getting their butt kicked by OpenAI" in the first place is because they had lots of people internally who acted as nothing but "vetoers", demanding the pace of AI slow down less it accidentally show too many white people. And this outcome is wholly unsurprising given that Google's second most important AI principle is "Avoid creating or reinforcing unfair bias.": https://ai.google/responsibility/principles/

In other words, you talk about "50 known issues with Gemini", but this issue was not a result of technical underperformance, on the contrary, is was the result of Google making things more difficult for themselves in an effort to satisfy a (false) idealized view of the world.

Well they succeeded at their second principle, by using "fair" bias.

It was certainly not some random issue that popped up, they specifically designed it that way: https://x.com/jonst0kes/status/1761190093669437559