Yes, Google's decision to stop censoring results in China was justified, because uncensored results helps the Chinese learn about the United States and other cultures. China is still a closed, secretive nation in many ways, and Google without censored results is important to help the Chinese learn about what is going on in the rest of the world and become a more open society.
Google is justified to not censor results in China. China does not own Google. If they want it censored that is up to them, but they should be the ones to pay to develop programs and ways to do it. If Google does it for business reasons that is fin, but it's up to them.