This was also introduced in the same moment as a bunch of real name initiatives from multiple companies. People were rejecting it based on what it demanded compared to what was offered. It also killed or force reworked other Google products that were working fine to end users (e.g. Google Talk).

In my eyes it was one of the key moments that put them on a downward trajectory in public opinion. So while it might have had the right features the rest of the deal sucked, and people were already tiring of social media overall.