We agree that much of what Google does is bad, but your solution both doesn't seem like it gets to the core of the issue, and moreover I can't actually think of a company that meets your threshold - it would be stupid for a company to produce a product that nobody wants.
I disagree. Production is cheap, more so for digital services, you can very well make shit nobody wants and then use advertising and marketing to produce demand.
And of course ‘wanting’ is ambiguous. There is a difference between impulsive desire and a cold-headed need. Heroin users also “want” the drug; gambling addicts “want” the gems in the f2p game’s store; people “want” the fantasy of beauty and success on social media, or fast-fashion’s first impression. People “want” sugar, love, attention, pleasure and safety/security in a way that’s disconnected to their modern actual needs. We are wired a certain way, adapted to natural scarcity and threat, and marketing and sales know this.
The abstraction of rational actors and beneficial, self-regulatory markets are evidently wrong for the most part, as we do know today. Everyone who says otherwise is driven by dogma and ideology, not scientific insights and recognition of our past’s experiments. Advertisement itself should make people question their ideas about the economy.
Google's ads service is something those companies (the advertisers) want.
And at the same time, Google has been acting unethically.