I'm not surprised at Google's response, since this looks to me along the same lines as putting lots of images in your signature in a popular forum; although in that case it is really is a D DoS. Maybe Google should consider putting a bandwidth limiter of some sort on that (or even better: use hashes to avoid duplicates), but I think screaming "security! vulnerability!" is not a good action to take here...
How could Google use hashes to avoid duplication? They'd have to download each link before they could hash the contents thereof, so the damage would still be done.
(I know that servers can be configured not to send ETags or break caches by sending random ones every time, but this could reduce the data usage considerably since most of the responses would only include the headers.)