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I'm sure that pretty much no Google employee is happy with this. But it's the classic "I don't want to lose my place near the top of the industry which I've spend my entire life getting to, so I can't criticize my employer or the direction the industry is going in any way." Self policing and going along with whatever the man decides so you don't lose your job and means of supporting yourself and your family. Same with a lot of the people working on the Web Integrity thing I imagine.
There are a lot of different places in the industry where these Google developers could work. I am employed by a company where developers have flexible schedules, no overtime work (except in unusual circumstances), and three days a week of work-from-home. The catch is that my company pays a lot less than Google does - still enough for an upper-middle-class lifestyle, but less. So our developers tend to be people who have children and want to spend more time with their families, and they're willing to take a pay cut to do that. (Note that by the time you're the sort of person who has the option of working at Google, "supporting your family" means working less, not more.) Google's developers are people who prefer higher pay and/or a more fast-paced environment. They might not like this policy, but they don't want to leave. They could if they wanted to.