The question is though, even if this was a mistake and Google admits it was their 'robot' or something like that, is the bridge totally burned by now.

Yes Jeff was making a fair amount of money and why not? For all the work he put in through the years, why not get a monetary compensation that will allow him to at least cover the hosting expenses. If Google turns back and says yes we made a mistake, we are reinstating your account, will Jeff go back to them or will he say eff this.

It is very difficult for someone to forget when they have been treated unfairly.

Again the above is all what-if scenarios but just saying...