Water use and mass displacement of labor get all the attention but there are so many other more subtle reasons like this that AI is going to be bad for society.

I disagree that this kind of scheme is inevitable. We can "evit" it through thoughtful discussion, foresight, alternative mitigations, and even regulation. Certainly, Google can choose to avoid it. On the other hand, the AI bubble will inevitably burst, since compute is not free. I look forward to post-bubble AI.