I agree that many proposed anti-piracy solutions are draconian (I once saw someone suggesting that Google should refuse to allow the word "torrent" in searches), but this doesn't seem too bad, and is certainly better than many.
Google tweak their search algorithms all the time, for various reasons. This is another tweak. They're not removing pages from search results based on DMCA notices, but they are using them as another data point in the algorithms. Also, note that they say:
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And we’ll continue to provide “counter-notice” tools so that those who believe their content has been wrongly removed can get it reinstated. We’ll also continue to be transparent about copyright removals.
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I don't think this is particularly draconian.