As the article mentions, this isn't a security "feature," it's anti-competetive. The worst part is that Nextcloud isn't even really in competition with Google. Setting up a Nextcloud server isn't hard, but it's not a trivial task. Sharing it outside your local network also requires a bit of skill, especially if done securely. That is to say, Nextcloud users probably tend to be more tech-savvy.

The people using Nextcloud aren't going to suddenly decide to switch over to Google Drive. I'll get it from FDroid before I downgrade to Google Drive. If that wasn't an option, I'd set up an FTP server or even WebDAV.

The worst part is that Nextcloud isn’t even really in competition with Google. Setting up a Nextcloud server isn’t hard, but it’s not a trivial task. Sharing it outside your local network also requires a bit of skill, especially if done securely. That is to say, Nextcloud users probably tend to be more tech-savvy.

That's only true for those who self-host this. There are lots of companies offering Nextcloud hosting. That's probably why Google doesn't like Nextcloud. I'm not saying Google is right. Actually what Google is doing here is quite pathetic.