As someone who's seen how this sausage is made in another jurisdction I assume what's going on here is Google or the builder got some sort of statement from some board to the tune of "oh well because you checked whatever boxes we will exercise our discretionary authority to waive this for you, the exact opposite of what how we'd behave if you were some uppity peasant seeking to develop some petty land". Naturally there are some who don't like this have probably complained to the next authority up who's putting some scrutiny on the situation and whatever approval they were given has been rescinded and now they gotta do it the hard expensive way.
Or it might be one of those cases where the discretionary BS you can be put through is so onerous and capricious that the cheapest way to get it done is to bulldoze first, let the threats fly and use whatever legal maneuvering that gets you to wind up with a more favorable venue (the higher up you go the more friendly to industry permitting authorities tend to become).
It's better to pay a fine than to ask for permission and get turned down? yeah, probably.
Better for who?
It's certainly not better for you and me that Google is able to do whatever they want at the cost of a fine and nothing more
Better for whoever Google is doing free work for in exchange for the permitting people not being dicks. Like usually the way this works is the developer grants concessions or signs a "I promise I'll make a park out of this other parcel" or whatever in order to get their easy approval. If they have to fight for it that'll probably go away.
I was speaking from google's point of view -certainly not ours!