This is fundamentally worse than a lot of what we've seen already though, is it not?

AI overviews are parasitic to traffic itself. If AI overviews are where people begin to go for information, websites get zero ad revenue, subscription revenue, or even traffic that can change their ranking in search.

Previous changes just did things like pulling a little better context previews from sites, which only somewhat decreased traffic, and adding more ads, which just made the experience of browsing worse, but this eliminates the entire business model of every website completely if Google continues pushing down this path.

It centralizes all actual traffic solely into Google, yet Google would still be relying on the sites it's eliminating the traffic of for its information. Those sites cut costs by replacing human writers with more and more AI models, search quality gets infinitely worse, sourcing from articles that themselves were sourced from nothing, then most websites which are no longer receiving enough traffic to be profitable collapse.