There really is a first here, they not only failed to notify the user but also handed over data they weren't legally obligated to.

I incline myself to be more annoyed at the problem than the folks reporting that the problem still exists.

Yes.

Google publicly promises not to do exactly what they did here. Why would this not be a story?

Agree. Google can't go against the all-mighty state. Just look at what Anthropic did and the effect of that action. There are billions of dollars at stake on government contracts that they can't afford to lose. Reminds me of Mullvad's ad https://www.youtube.com/watch?v=fPzvUW8qaWY