There is not a single company in history that failed to get away with malicious behavior due to being "full of hackers that would instantly revolt". Engineers do not have executive power within companies. Executives do. Engineers "revolt" by quitting, and at Google they are easy to replace.
You're right, they do revolt by quitting. I don't see a big exodus. I have several friends there I know would be out the door in a heartbeat, and 5 years ago I knew one of the guys who is now one of the most senior on the Chrome team. Unless his character has been very fundamentally altered, there's not a snowball's chance in hell he would aid such an effort.