I think there's an unevaluated tension in goals between keeping users safe from malware here and making it easy for new sites to reach people, regardless of whether those sites display patterns consistent with malware distributors.

I don't think we can easily discard the first in favor of the second. Not nearly as categorically as is done here. Those "false negatives" mean users lose things (bank accounts, privacy, access to their computer) through no fault of their own. We should pause and consider that before weeping and rending our garments that yet another hosting provider solution had a bad day.

You've stopped considering monopoly and correctly considered that the real issue is safe browsing, as a feature, is useful to users and disruptive to new business models. But that's independent of Google; that's the nature of sharing a network between actors that want to provide useful services to people and actors that want to cause harm. If I build a browser today, from scratch, that included safe browsing we'd be in the same place and there'd be no Google in the story.