Do you have a source for this? I could find no information on what has happened since February 10th,
First hit when you web search for "terraria account google" is this:
Update: Terraria will be coming to Stadia after all, after the game's co-creator had access to their Google accounts restored.
www.ign.com
It has links at the top to official communication from Terraria that everything is good again.
The point still stands - our choices are getting more limited.
Between Google, Facebook, Amazon, Apple etc. etc. we're all doomed anyway.
There are many other providers of hosting and e-mail service.
Where it gets difficult is this: people want for example a free e-mail service. But they also want that e-mail service to remain up and running when the company hosting the e-mail is served with a legal order against that account, of when they e-mail provider catches the user performing illegal actions. And they want easy-to-reach fully staffed human tech support for when things go wrong (like: I lost my password, or my account was closed because I was caught sending pictures that are illegal, or my account was hacked by criminals from Elbonia, or the court ordered you to close my account but my lawyer sees it should stay open). And they want the hosting company's lawyers go fight for them.
I pay $10 per month for my e-mail and hosting. I know that I can reach my e-mail provider by phone, 24x7, and someone will answer the phone. I know their address, so if I need to personally deliver paperwork (like legal documents), I can get there by car in about 3 hours. I know that if I need to meet with the CEO of that company on an important issue, I can make an appointment, and he will talk to me. I know that their lawyers will try to defend me if they are served with an order shutting me down. All this is from personal experience (been there, done that, got the T-shirt). All that for $10 per month? Pretty good deal if you ask me. To be honest, the fact that I had to give my personal lawyers about $3000 to help defend me made the whole thing quite a bit more expensive, but the hosting company did pay for their own lawyer on my behalf.
Now, if someone wants to have all that service, but not pay for it? Sorry, that's unrealistic. If you need a business-critical or hosting service, a free one is unlikely to be a good choice.