The "privacy sandbox" stuff is a perfect example of this process.
Yes, they might even intentionally have started with proposal so over-the-top that people who are now protesting may feel that they won when some time afterwards Google presents slightly less creepy second iteration this. And the ones who don't will be cast as radicals who don't want to engage in good-faith discussion while Google seemingly proposes a reasonable compromise. Besides, would anybody please think of the child... err... banks with webpages!