"Google could have, and still could block my gmail"
They have a different revenue generation business model for gmail.
My son's account was blocked, couldn't figure out why, and they wouldn't say. I suspect some kind of data mining thing where watching more than 5000 blitzwinger videos on youtube "proves" you're a kid or a teen. He does like his video games...
He falls into that gap between being old enough to have an account per google's rules, but young enough to not have his own credit card or a drivers license (they'd accept a scanned copy of his DL, but he's not 16 yet) so the only option to reinstate his account was to get Dad (me) to charge 50 cents on his CC to "prove" he's of legal age.
So part of the gmail business model is to hold kids (teens) accounts hostage with a threat of permanent deletion until Dad pays 50 cents. I'm not annoyed at the 50 cents, gmail is worth a large multiple of that. I am annoyed that at a random time long after BAU was initiated, they felt like charging us for fun.
It is possible the gmail biz model of randomly applied fees could be applied to play store / wallet accounts.
Not sure if OP would have flown off into as much of a rage for a $50 reinstatement fee, or if he'd be like me, pissed off at the "business agreement" being unilaterally rewritten at a later date. Either way, the gmail biz model does appear to be superior to the play/wallet/app store biz model, at least GOOG would get some revenue, however little.
I assume based on evidence Google dropped the "don't be evil" motto a long time ago.