The main problem is that, thanks to Chrome's massive market share, Google is in a position where they can effectively dictate the future of the Web as a platform.
We've already seen a few instances of this: Manifest v3 and FLoC/Privacy Sandbox, for example, were met with widespread opposition, but eventually they made their way into Chrome; WEI, on the other hand, was withdrawn due to backlash, but make no mistake, it will come back at some point.
The current state of Web standards can be summed up as: whatever Chrome does is the standard. The other browsers have to follow along, either because their modest market share doesn't afford them the luxury to be incompatible with Chrome, or because they're based on Chromium, so they hardly have a choice. The only exception is Apple, but let's be honest, they only do so because of their own business interests.
Ideally, Chrome/Chromium should be spun off as an independent non-profit foundation set up to act in the public interest. Obviously there would be trade-offs: a slower development cycle, new features taking longer to be shipped, etc. But in my opinion that's far preferrable to having Google continue to exert this level of control over the Web.
Unfortunately, the current administration has two months left in its term, so it's not going to happen.