If I created a website that contains millions of Getty images, full size, and they were all hotlinked to Getty, using their bandwidth, does anyone really think I wouldnt find myself in court, in a split second, getting sued to death?
So why can google get away with the exact same thing? Its blatant copyright infringement. No way in hell this falls under fair use. But they have billions, and are a corrupt and immoral corporation looking to profit at any cost with an ocean of attorneys standing behind them.
Its as simple as that.