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I don't think they're opposing goals. Google does not make more money from a task running in its cloud than on its devices, if anything that costs them more money.
I think it's realistic to assume that Google is going to impose quotas on those "free" AI features that are running on the cloud right now and have people pay for more quota. It makes no economic sense for Google to keep offering those compute services for free. Remember Google Colab? Started completely free with V100 and A100 GPUs, now you have to pay to just keep using a simple T4 GPU without interruption.
Bold of you to assume they don't do that with the locally processed data too
Google makes money from ads that they're going to serve you no matter where they process your data.
Google is going to pull all that metadata from your device regardless of where it was processed.
Servers cost Google money to run. It costs them nothing to run something on your device. They clearly have a vested interest in running it on your device if they can.