Google hasn't given up on email. The issue you're experiencing is likely due to a misinterpreted bounce message or backscatter spam. When spammers send emails with forged 'From' or 'To' addresses, mail servers may respond with a bounce message, which in this case is being delivered to your Gmail inbox because the spammer used your address as the 'To' or 'From' address. Google's mail servers are simply following standard SMTP protocol by sending a bounce message when they can't deliver an email.
Key Takeaways
The issue is likely backscatter spam
Spammers are using your address as 'To' or 'From'
Google is following standard SMTP protocol
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