But we don't get the high quality products for free. Google is using Chrome to strenghten their market dominance in other markets, such as advertising. Furthermore, they are using their market power in browsers to push through standards and protocols that mostly benefit them.

Just ask yourself this: Google is one of the largest and most profitable companies on Earth. They are a for-profit, capitalistic company. Legally, their main duty is to maximize shareholder profit. Why would they give away somehting for free, if in the end, it does not benefit them more than not giving it away for free?

Competition is always better for consumers, unless you believe in a "benevolent dictator" situation (which, as reality shows, also never ends well).