My high school US history teacher said this (during the ramp-up to the Iraq war): "Posturing for war can be very good, actually going to war is NEVER good."
The parallel here, in my mind, is that Google has an opportunity for accomplishing several things while "posturing" for war with the Chinese government:
* Put pressure on the Chinese government to change. This is the public-facing goal of the campaign. The cause.
* Make up for any negative press about privacy by reinforcing the idea that their users' accounts are meant to be completely private and secure.
* Align themselves with human-rights causes, garnering trust amid doubts about trustworthiness and projecting a policy on censorship.
Posturing for war will likely prove very good for Google, and may result in the Chinese government caving. But if they actually have to go to war, it will be painful.
In my mind, it would be ideal for Google to posture for as long as they can, and as loud as they can, and see if they can't get the Chinese government to back down at all. Any significant win, without going to war, could be cause to not go to war, for it could be wrapped up as the government "cooperating".
Never attribute to goodwill, that which can be more adequately explained by good marketing.