Well I haven't read the entire license, only what is listed above, but it seems to me that you're looking too far into it. Here's my breakdown...
Google claims no ownership or control over any Content submitted, posted or displayed by you on or through the 3D Warehouse. You or a third party licensor, as appropriate, retain all patent, trademark and copyright to any Content you submit, post or display on or through the 3D Warehouse and you are responsible for protecting those rights, as appropriate.
Anybody that creates something or purchases it from a creator is the owner. Google is not interested in actually owning the content, or protecting the owners rights.
By submitting, posting or displaying Content through the 3D Warehouse, you grant Google and its end users a worldwide, royalty-free, non-exclusive, perpetual license to exercise the rights in the Content, as stated below:
However, by submitting the creation to their 3D warehouse, Google
and all their users get an irrevocable license (not ownership) to do the following...
1. to reproduce the Content;
2. to create and reproduce derivative works of the Content;
3. to display publicly and distribute copies of the Content;
4. to display publicly and distribute copies of derivative works of the content.
1. allows the re-production (to create again) of the creation
2. allows the production and re-production of a derivative work
3. allows the display (so you can show what your "product" includes) and distribution (so you can include it with the "product")
4. allows the same as above for any derivative work as well.
Furthermore, for the avoidance of doubt, Google reserves, and you grant Google, the right to syndicate Content submitted, posted or displayed by you on or through the 3D Warehouse and use that Content in connection with any of the services offered by Google.
Google specifically takes additional rights here (just so there is no uncertainty that they are allowed to do it), but these are not given to the end users as well. They merely reserve the right to use the creation in their other products.
Notwithstanding the above, end users may not aggregate the Content obtained from the 3D Warehouse for redistribution, and may not use or distribute Content obtained from the 3D Warehouse in a mapping or geographic application or service without Google’s prior authorization.
And finally, as previously mentioned, this just is a restriction to the end users to give them legal recourse should somebody choose to compete with google with a similar collection - and try to get a head-start by getting everything from the 3D warehouse.
The rights passed on to our users are to re-produce, derive, and distribute - not to aggregate. As a result, yes, somebody would get in trouble, but it shouldn't be us.
But I can understand if you are hesitant.