Re: Bad bargaining
"Google should have offered to simply remove all Getty images from search results. Then Getty would have paid Google to put them back in."
1) This kind of strongarm tactics is what would see Google in court fairly quickly for abuse of dominant position.
2) Getty would likely have said 'fine, go for it'. They make almost all their money from companies who license from them directly, and don't have a quick look on Google to find an image so they can commit a crime with it. (Copyright infringement is a crime. It isn't stealing, but it is still criminal.)