i disagree with them not caring about little guys - they're public, they have high pressure to get companies of every size into the auction to earn max profits.
as someone who runs ppc for many small companies, G is a great opportunity for the little guy to compete with the big boys - that wouldn't be true if they didn't "care" about businesses of all sizes. honestly, i think they care about the user most - so they don't really care about the little guy - OR the big guy. they care about advertisers that please their users, no matter their size.
i think they just have a huge policing task that they can't automate algorithmically very well - that same profit factor above drives this too, they can't take the time to investigate every person's history, so they've decided a level of collateral damage that they can automate to a degree. in the end, collectively, we're to blame - too many scumbags amongst us all makes it impossible to have policing that's both fair and cost effective.
G does need an ombudsman or appeals process where those damaged collaterally can get fixed up. the people there at G are smarties - give them some leeway to restore people. bad actors will get caught again quickly, good actors won't.