That doesn't surprise me. Google and the hacker/startup community have vastly different and often opposing interests.
In the end Google is the biggest advertising agency in the world. Advertising makes money by pushing people to make irrational choices - buy products and services that they don't need; buy from the vendor with bigger marketing budget, rather than superior engineering; overspend on stuff they need - e.g. cars, etc.
Google is not an "advertising agency", that is a specific thing. What they are is a mainly ad supported medium which is what most internet services are, same as TV/Radio/Newspapers/Mags etc.
Airing out philosophical and theoretical disagreements with the ad model is merely a rationalization after the fact in this situation.