This debate is frustrating because it lacks data — it's full of opinions about which risk is worse than which other.
To compare the risks and benefits, we need to know how often people actually re-use passwords, use 2FA, rely solely on their phone screen lock for access to all their accounts, use biometrics, need account recovery, and so on. That data is the only way to settle the debate (and would allow each person can settle it for themselves, perhaps differently based on their circumstances).
Google has most of this data. They should publish it to back up their claims.
To compare the risks and benefits, we need to know how often people actually re-use passwords, use 2FA, rely solely on their phone screen lock for access to all their accounts, use biometrics, need account recovery, and so on. That data is the only way to settle the debate (and would allow each person can settle it for themselves, perhaps differently based on their circumstances).
Google has most of this data. They should publish it to back up their claims.