Put aside our desire for this NOT to happen but I cannot see how Sundar sees this as a good idea besides being a monopoly. It's like your financial advisor shouting out to you "Hey, I know you've been diligently putting money away into 401ks and IRAs and you're on track for financial success, but why don't you just go rob that armored car tomorrow, and that $4 million you could pocket... you can retire tomorrow." It's like yeah, there's an obvious success if you pull it off and if Sundar pulls this off, but how will this not be an immediate monopoly/antitrust red flag? IT's going to be scrutinized to death. Sure I can imagine someone having an idea at a bar like this and joking and laughing it off but to go as far as to pitch it and push Apple to accept it... lol. Some people were really high when they made those slides to go to Tim Cook.
Also Apple's not known for just allowing bloatware the way Samsung and other phone makers allow 3rd party software to just be loaded up left and right. For Apple to pre-install a Google app, another industry giant, is a big deal.