IBM is full of really smart people some of whom work on really hard problems using the principles of Computer science. The z13 wasn't the result of two recent grads pivoting a Yelp for Rabbits startup and the z13 isn't for companies hoping to do a billion transactions a day. It's for those doing it.
To say that the Google 'many-servers' approach is the only valid one is to overstate the trade-offs.
At a basic level this kind of sytem gives you lots of low latency bandwidth connecting CPUs to each other and CPUs to storage. That is a useful quality to have and not neccessarily easily repoducible using network and internet connections between servers and data centers.
A mainframe is typically partitioned into multiple, smaller systems. This is what IBM calls a Logical Partition (LPAR). This partitioning is done with firmware called PR/SM. This capability has been around since the 3090 (mid to late 80's). Within an LPAR, one typically installs either z/OS or z/VM (there are other systems too, but less commonly used this way). Running in an LPAR is 'bare metal'. Within z/VM, there's typically a mix of guest types, but this is where Linux would typically be configured to run. z/VM has some pretty impressive capabilities and has been around for a LONG time. It's very stable. The biggest things that you would probably dislike about it are: (1) one uses a 3270 emulator to do day-to-day system-level admin work, (2) it only runs (legally) on real mainframe hardware, and (3) much of IBM's jargon is dated and would unfamiliar to people coming from x86.
The modern mainframe hardware and software has an impressive feature set for virtualized networking (networking is all software defined and runs within the box). This means you can set up hundreds or thousands of Linux guests and have them on networks that are all virtualized within z/VM. And of course, z/VM guests can be created and spun-up on demand and stopped on-demand. This has been there for decades.
IBM now has support for OpenStack in z/VM. From what I've perused, it seems to be quite slick. Assuming it all works as advertised, this would make folks coming from x86 feel much more at home.
Many seem to think that distributed systems are so much cheaper. You can't just think of it as the price of the rack server though. You have to include everything in the mix to understand the total cost: hardware, software, networking, people (headcount and consulting), power and cooling, floorspace, and intangibles (such as capabilities). When you do the math, mainframes running Linux under z/VM are often fairly economical (YMMV).
Once you throw off the stereotypes and objectively dig into the modern mainframe, you might be surprised at what you find.
Nowadays you don't create a single monolithic system, really expensive too, which is capable of processing all of your transactions, as it says, like 100 cybermondays every day.
Instead, you have a distributed system, with many cheap, geographically distributed servers, each one capable of a much lower number of transactions, but still quite high today... and also you can spin up new servers as needed, or destroy servers as they are no longer needed, so you control your costs when you don't need as much instead of having a very expensive mainframe 90% underutilized 90% of the time.