However, it seems to me that their Cloud Storage offering is substantially more expensive compared to AWS's S3 offering. Why is this? Why is GCP not pricing this service competitively?
Here are the monthly price calculators that show S3 is cheaper than GCS - hopefully I didn't type anything in wrong. I used 1 TB of storage, 10 million get operations and 10 million post operations, and 200 GB egress.
S3 monthly: $102.63
GCS monthly: $160.62 (about 56.5% more expensive)
GCS: https://cloud.google.com/products/calculator/#id=cddb4e9a-f2e0-4b9e-8644-8e512bf77ca5
S3: https://calculator.s3.amazonaws.com/index.html#r=IAD&s=S3&key=calc-684497CE-C3B9-47C3-85DF-247D9149FABA