> and the business is also motivated to provide a way to fix broken logins. It's a good solution for that scenario.

This is a big part of it. An employee at a business will be able to talk to someone in person and say 'I can't login. Can you reset my password?' or whatever equivalent, and be made whole. Even if the business is is made up of 10000 people and the identity of the employee is for some reason in question, the situation can still be resolved with a passport or a driver's licence.

Google is never going to make you whole again if you're locked out of your account, unless you're a celebrity and make a stink. There is no help desk where you can prove who you are (and even if you could, would you want to? That's a whole second domain of problems that I'm not sure will ever be solved completely).