Acquire, Embrace, Extinguish I think we're at Stage 3.
That's not the correct quip (Embrace, Extend, Extinguish); and even if it were, it doesn't make any more sense in this context than your version does. Even in the most skeptical reading of the situation, Google never "embraced" adblockers, they allowed them. You'll note there's no extensions on Chrome for Android for example.
https://www.theverge.com/2018/2/14/17011266/google-chrome-ad...