This is a terrible idea, and it's not something I'd trust even a little. This is all about locking you into Google, and making it easy for them to manage your home remotely.
I would put absolutely zero trust in this device.
People are dumb when it comes to technology. Maybe Google sees that there will be not only a need, but a requirement for a home network design/protocol/whatever that encapsulates the hardware we now get from our ISP of choice. We're entering the "internet access is a fundamental right" era. It's only logical to conclude that means highly regulated internet and, naturally, the need for a standard the government can leverage when they take over.
I'm not refuting that it can lead to Google being able to turn over your home network to the Feds; rather, that it isn't because someday they want to.