Baidu is under strict control of the Communist party, Google is more independent.
China doesn't need Google but I think it would be worse off without it.
At least Google is honest and tells people when the results have been censored, Baidu doesn't. Google will also probably apply the bare minimum amount of censorship required by law. Google also is a vital channel for information to travel from west to China which will be worse off without it.
I think Google should accept the censorship but not the attacks on their servers. They should push the government for an investigation and tell them they'll pull out if it happens again.