Just as there are SEO firms that help companies ascend the rankings, there are "reputation management" firms that erase bad news by publishing new articles & by pushing takedown requests on articles they don't like. As with SEO, Google appears to tacitly encourage this.
It seems obvious that there should be a review process for takedown requests, with penalties for frivolous requests. (Up to and perhaps including lawsuits to cover costs and for the sake of deterrence.) But it's not at all obvious to Google.
Your post seems to assume anyone in power is acting in good faith and wants a fair system.
DMCA notices are supposed to be filed under penalty of perjury, but I'm not aware of anyone ever being prosecuted for that.