Undoubtedly, for the Chrome Store as well as all of their other properties.
Ultimately, Google's business model is about earning fractions of a cent per view/download and making it up in volume. Their profit margin depends on relentless cost optimization, and humans are inevitably the most expensive part of their support/maintenance systems.
Google undoubtedly doesn't want to put extension writers out of business, but if they adjust their procedures to give cases like this real human attention then they will undoubtedly allow a few dozen spammers/scammers to also receive human attention.
(Note: I present the above without judgement. If I were to add my judgement, I'd say that I don't think that this state of affairs is a good thing, and in the long run we may need to reconsider whether algorithmic promotion of content without human oversight is viable.)