It's probably worse for a few, and better for a lot. Maybe the Google automation is shutting down a hundred nefarious developers for every one legitimate developer. Without the automation all would be active; with the automation one guy gets screwed and it's hard for him to navigate his way back, but thousands of users are better off
Most justice systems are built on the assumption that it's better to let 100 guilty people go than convicting one innocent person. Once we accept that it's OK to convict innocent people as long as the averages are fine then we are heading into serious trouble.
You're comparing a merchant system with a criminal justice system. Obviously the cost or the downside of false positive is very different between those two, as well as the cost of making the judgement itself, given the difference in scale.
