There may well be evil at google, but it's not here.
My take on this is that CoreOS and google have different use cases, and the beset solution would have been to fork the project. Since google is big [citation not needed], most development effort would probably end up there, but people who wanted the simple version could stick with it.
The difference between a HTTP API and gRPC is one of scale. If the HTTP one is a few bytes more per message, and takes a few more clock cycles to decode, then at google-scale that might mean extra energy use on the order of a small town. RPC makes complete sense for google here.
Then there's reliability. If something fails one in a million times, it's a minor inconvenience to someone who uses it once a day but if you're running it four billion times a day then you start to notice. gRPC is strongly typed so it actually removes the malformed HTTP failure mode - and you can bet that google's SREs are taking care of the other ones too. When the OP says "Quality is, alas, a dying art", I'm not sure whether that's an honest description of just how many "nines" the google SREs are building into their projects. It's not like they invented gRPC to make their systems less stable!
I can recommend rachelbythebay's comments on this, she's a SRE who has done the rounds in silicon valley - appropriate posts here are "Some Items from my Reliability List" [1] where she famously says "there is far, far too much JSON at $company" and ends that section with "Why aren't you using some kind of actual RPC mechanism? Do you like pain?" - at the scale she's operating, RPC is less pain it would seem.
In "We have to talk about this Python, Gunicorn, Gevent thing" [2] she criticises the use of a popular python framework at the scale she's operating at (I'm sure this was shared on HN in the past).
This doesn't mean that python, "RPC over HTTP", JSON or etcd are in any way bad. In fat their simplicity makes them great things for beginners to learn and medium to large companies to use - they're not just prototyping tools, people can and do build a lot of real stuff with them. It's just that at some point before you get to the ridiculous scale of google's infrastructure, there's a tipping point where going full RPC starts saving you a lot more than it costs; that's not a bad thing and it has nothing to do with trying to "capture the market" or anything like that. A corollary of this: precisely because google works at such a scale, there will be a lot more developers working on grpc-etcd than the "consumer" one.
Summary: developer builds great tool for A; big company has use case B.
[1] http://rachelbythebay.com/w/2019/07/21/reliability/
[2] http://rachelbythebay.com/w/2020/03/07/costly/