I could not get from the OP what really happened and what was the claim / explanation from Google side.

This is the only way. Why would people who build these things give a crap if their quality of life is great save for a blog post?

They are your customer service. All of them. And your complaints will eventually meaningfully get addressed.

So to Google, killing accounts of malicious actors is a primary concern, and obviously you can wield a lot of damage to people through google's services if unchecked. And even with checks, every bad actor wears the mask of innocence when appealing.

So this puts Google in a rather intractable position. Without numbers it's hard to say whether they are leaning to hard towards stopping fraud (many false positives), or too hard towards giving accounts freedom (high levels of malware served).

I guess it would a hassle to go to the bank but loosing some images or old emails wouldn't be so catastrophic TBH. Maybe being somewhat nihilistic/minimalist I think that it all will still be lost when I die, so why trying to grasp those things? In some sense it's kind of liberating not depending too much on these kind of things.

If Google has something similar this seems preferable to the alternatives.

You also can't expect it to get any better, both because Alphabet has never shown any interest in improving things and because you and the services you've been using them for aren't the new AI hotness. Even if you're absurdly profitable for them (and you're clearly not) you're not in an area that their internal people are competing to serve.

Google ain't it.