people have gone to jail for it yes. Good luck catching them however as the attack normally comes from stolen account from Cloud servers (i.e. Amazon cloud services) or from end user devices on a botnet (i.e. PC and smartphones).
Unfortunately, you can't prevent bandwidth usage if it requires no flow control. They just clog up your pipe bandwidth and there is little you can do about it. Block it all you want to the final destination (if your router can handle the load), but the fact of the matter is quality of service of passing good packets into the network will be unusable.
you can put toothpaste back into the tube, it just isn't pretty or very productive. It cheaper and less hassle to buy a new tube. Not sure what this means for Google, but at least we have the toothpaste myth covered. ;-)
comes with the territory of having the highest market share unfortunately. When there is a will, there is a way. Not sure that sticking your head in the ground and being skeptical of validity of this story is a productive move. Therefore, I am glad Google has acknowledged there is a challenge because they are the #1 target, and hopefully for the sake of their users they will step up the effort, even if it means being less "open". Just hope its not too late to get the...