If you were hosting phishing sites then I'm glad they did this. You should have better controls.
According to the postmortem they had removed the site in question a week back. Google was acting on a week old data. Besides, any user-content serving platform will have to deal with malicious users. It is not a perfect process, especially against bot traffic. Shutting down the whole domain was very heavy handed.
I realize some things take time, but the onus is on them to do a final verification before flipping the switch to shut down an entire business(!)
Google is "saving money" on support costs while simultaneously destroying their brand image (at least among the tech crowd). It will be near impossible for them to re-earn that goodwill. It's such ridiculously short sighted thinking.
I'm moving off of G-Suite this week. This is the final straw.