Or turn it into a tightly regulated natural monopoly, a la a public utility.
But I totally agree with you: some things should just be state-owned. We should put our energies into identifying those things and addressing any legitimate concerns (e.g. spying via requiring open source and reproducible builds) instead of trying to free market all the things.
That's pretty much the optimal state of the current iteration of democracy, isn't it? I'd feel more scared if everyone agreed to it and there was no complaints, then something is guaranteed to be fucky-wucky for the normal person, but without knowing about it. At least if both sides complain about the other, it's relatively impartial.
The only part that isn't is the brand, and the ties with Google. And I am not a fan of the idea of a (foreign in my case) government browser, I'd rather have Google. At least, Google has a presence in my country and is bound by its laws,
That seems like a death sentence. The standards aren't stagnant.
Or, just an out-there idea, what if the Chrome became property of the government instead? Forced to be FOSS, put into maintenance mode and offer it as a truly user-focused browser instead of driven by any for-profit company (which will eventually run it into the ground).