I manage IT for a number of small businesses, so I routinely reformat my devices and also monitor traffic on my network regularly so I am fairly certain there is no malware. (Well, to the extent that one can be confident, at all, nowadays.)

That said, the idea that Google can hold my time hostage in this way is concerning. The suggestions you presented are not feasible for most users. Who has money to just go buy a new phone because Google's reCAPTCHAs are taking up their day? Why should that be acceptable?