That feeling of being "smothered" might simply be that you need a higher pressure setting. The pressure that feels comfortable while awake might not be sufficient when your body is asleep.
1) in the case of Area 120, this is one of the ways it was pitched to management. “Passionate entrepreneurs are leaving to work on new ideas; if you give them a place inside Google to pursue new ideas, it keeps them and their entrepreneurial energy at the company.”
2) in general, early Google used to hoard talent all the time. The founders would keep great people (or their friends) on payroll for ~ever just to have them stick around. That was most prevalent in the first decade of Google’s life, to my knowledge, and mostly applied to very senior people.
By the time Area 120 was pitched and approved (circa 2014), those days were largely gone. Area 120 was primarily filled with junior people (L4-L6) and constantly had to sing for its supper - it was not at all a sinecure.
You’re not wrong. They were among the top 10% of people I worked with in terms of passion, commitment, and creativity. They weren’t among the top 10% in terms of their skill in navigating Dilbert-land corporatism.
A significant number of the people in Area 120 projects were folks who were stifled and/or wasted in their previous Google jobs. One explicit purpose of Area 120 was to prevent the loss of these entrepreneurs to outside startups. Not incidentally, this was a form of cultural reinforcement - Area 120 burnished Google’s reputation as a good home for entrepreneurial mindsets.
Which 5% of projects are really great? In my experience, presuming you have tight filters such that all of your projects are plausibly potentially great, you really don’t know until you try. That’s the point of an incubator.
It’s not that hard to evaluate when something is working (ie the hard part in evaluation is false negatives, not false positives).
In Area 120’s case there was no coasting - if anything there was a hair-trigger standard to shut down underperforming projects.
I joined Area 120 with huge skepticism. It was hamstrung and inefficient in its own ways. And I agree it didn’t reach its potential - largely because it was encased in Google 2020 instead of Google 2007.
But to my surprise almost all of the projects were impressive, well-conceived, promising bets. And the people in Area 120 were among the top 10% of Googlers I worked with in my decade at the company.
Google killed Area 120 because of bureaucracy and politics, full stop. Google is worse off because of it.