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Remember when "nintendo" was shorthand for all console video games? To the point that Nintendo had to put out a public statement to remind people they were a specific company and brand? Same deal with "photoshop", "band-aid", and "kool-aid".
it reduces the "strength" of their trademark, making it slightly more likely they could lose it
I do think in the case of google they so dominate the consciousness of the market that google means "search on the internet for" but it also usually, for the vast majority (at least in the US), means they will use google to search the internet, unlike when someone askes for a band-aid, when they mean an adhesive bandage