I don't think there's anything specific to Google. I think the chain of events was basically:
1. Storage is expensive, so software designers and users build tools and habits that are parsimonious with it. Programs would store files in carefully designed binary formats to save space because space was expensive. Users would periodically go through directories on our computers and manually delete old stuff. Apps required users to explicitly choose what to save.
2. Storage gets much cheaper.
3. Seeing that, companies like Google and others offer "unlimited storage" by projecting the observed user behavior from (1) onto the storage costs of (2).
4. But now users and app developers change their behavior since the incentive environment is now (3). Camera apps automatically save every photo you take. Phones record higher and higher resolution video. Users stop deleting anything and rely on search to wade through their sea of bits.
5. Companies how have to adapt to the reality of (4).
I don't think there was anything particularly nefarious or shitty on the part of any participant. It's just the nature of big complex iterated systems with emergent properties.