It's a shit idea but honestly Google isn't even the bad guy here. Everyone is mad at the theoretical anti-adblock usage of theoretical websites. Be mad at those websites instead!
Almost every free service out there runs on ads. If you pay your subscriptions, you probably won't even notice these shitty websites. There is exactly one group of people who will be hit the worst, and that's people who want everything for free with no ads and no requirement to provide anything of value in return. Guess what? No business can operate like that!
Google is in some very deep shit if the alleged ad fraud stories are true. They need to be able to verify that people are human or they will collapse under lawsuits.
We wouldn't need this crap if we, as a society, hadn't decided that we want everything for cheap or for free. Remote attestation can actually be valuable (i.e. for company owned devices entering a corporate intranet) but the fact everyone fears getting locked out of everything is a symptom of a much bigger problem with the internet today, one we're probably not willing to face.
I'm all for killing the big tech giants and bringing back competition, but Google quickly going bankrupt will be disastrous. Youtube and about fifteen years of human existence will disappear from the internet, billions of phones will stop receiving updates, gmail.com will disappear and businesses all over the world will be ruined as a result.
Even if this falls through, Google will still need to validate real browsers somehow. Expect CAPTCHAs for every news article instead. Maybe solve some puzzles before you can comment. This is their user friendly, unobtrusive attempt to get this tech through; if it fails, I expect their next attempt to be much worse. The web may very well end up being like browsing through Tor.
Absolutely not, Google is the driving force giving them that power, knowing it's very ripe for that sort of abuse.
Google is experimenting with detecting adblockers on YouTube. Don't for a moment think that the fact that this can be used to stop adblocking is lost on google. Honestly I wouldn't be surprised if that was secretly one of the main drivers behind it all.