Your edit is spot on. Google is trying to annoy people out of using VPNs and other tracking blockers. In most cases, I allow one CAPTCHA, and if that fails, I go somewhere else. If it's Google search, where I go next is Bing, just to punish Google.
When I must use Google, I do so in a dedicated container on Firefox. That way, Google knows who I am, but the only thing they ever get is what traffic I'm sending to them.
One thing I have yet to do is randomize my VPN exit node for Google; I've noticed that they correlate exit nodes to device trackers, and if I visit somewhere outside of my Google container, they can tell it's me by correlation. I may start using Firefox's VPN for Google connections, or just fire up Tor for Google connections.