I think you're very wrong and I'll be happy to explain why.
The theme of this Google i/o was "AI". They said that throughout. In other words, they said themselves that they put AI first and tried to show the best products. However, they failed mercilessly. They have not managed to make better products than the competition.
If it were only about producing products suitable for the masses, it wouldn't be a problem. But many other companies do the same. Smartphones have now become a mass market. Xiaomi, Huawei, Pocco and so on all want to reach this market. Google is no longer alone.
They also didn't show products that appeal to the masses but are supposed to be SOTA ("2m CONTEXTWINDOWS" - repeated 10 times I'm sure). Demis Hassabis was brought on stage (for the first time) not to explain the internet to the grandma next door, but as the head of DeepMind to say that they have caught up, that they are as - if not better than - OpenAI.
The Google i/o is the DEVELOPER CONVERENCE, as they say themselves. It's about development and SOTA products. It is neither the place nor the time to appeal to the masses. And that was never the point.