The most damning allegation in Google's complaints revolve around breaches of federal laws.
If proven, Hood's going to spend time in Club Fed. It's no wonder he's backing off, given the evidence for the claims came from FOIA disclosures, not from any of the Sony hacks - although what's coming out of that wee mess(*) is "interesting" in an ancient chinese proverb sense.
I don't think Google are in a mood to play nice anymore. They repeatedly did what the MPAA demanded (and more besides) to be screamed at that they "weren't doing enough, dammit". At some point you realise that "appeasement" isn't going to work and you have to swat that annoying bug.
That war chest would as easily be deployed to buy and shut down most of Hollywood or the recording industry - and still could be.
(*)The code might well have NK origins, but the attacks are more likely to have a domestic USA skiddie group behind them than The Glorious Lardbutt.