They earned that reputation with their privacy abuses of consumers. The trust is gone. Whether this is "good" or not itself isnt relevant to a lot of people as there are many competitors in this space with good track records like yubikey.
They could have gone with Yubico and identified with a proven vendor of authentication products. They market a wide variety of products for many different purposes INCLUDING the Apple iDevices, but they chose Google? Even for me, that doesn't make a heck of a lot of sense. Google does a hell of a lot to violate their customers security and beat down people in China and elsewhere. Google would be one of the last companies I'd think of as appropriate to try to support Apple's security initiatives. That would be like choosing Facebook for support on a 'truth in advertising' initiative.
Yeah, bad call... Looks bad, smells bad...