Since the sensorship is beyond what Google's founders had expected. Even we native Chinese had not expected that then.
However, given they have invested so much on the Free Music Plan, and the market was rewarding, why, all of sudden, they pulled their feet? And risking of losing the world's largest and emerging market?
Though, I agree there are multiple causes about that. But simply thinking they pulled because they were losing ...
The government is made up of people. After living in China for a while, you soon find some Chinese people are friendly to your face, but are monitoring your emails thru your ISP, or tracking your movements around the city, or arranging for a breakin at your apartment. And these are young Chinese, just doing what their seniors showed them. Young Chinese don't have the concept in their minds that internet blocking harms innovation, and will do the same in government when they replace their elders.
At the very least I could see myself using it in the browser for development.