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I ve been at Google for 3 years and have 20%ed the entire time I ve been there on: grpc-go, Drive, and Go tools (gopls, etc).
I think it s fantastic. The whole 120% thing is up to the individual: there have been times I ve made it a 120%, and there are times when it s been just take a friday off to work on other stuff . You end up getting less of your job done but my managers have always been supportive.
It s been great for sanity: some weeks/months feel just, like, meetings and chore work. It s great having that one day a week to work on a rockstar feature request in some fun project. It s also cool to work on your dream projects without the luck/physical move/whatever to get on the actual team. (you can effectively work on anything since no project is going to say no to free headcount)