The main complaints about the g I see are the following:
- It is confusing since it's not the first letter of Kagi
- It is mistaken for Google's previous logo
Firstly, I agree that not using the first letter is uncommon, but Google itself switched from uppercase G to lowercase g in 2008, due to better scalability on mobile devices, and kept the 4th letter until 2015. There are also other examples of companies not using the first letter: excite.com, spacex, onenote, linkedin, excel, etc. While it is uncommon, I personally think it's unique and original, which fits well with Kagi's identity.
For the second argument, while Google did use a lowercase g for many years, the font is completely different. Unlike Kagi's logo, it has two closed loops, as seen in the below pictures:


The g is also slanted a bit to the left in Google's logo, while Kagi's logo is more minimalistic and contains a magnifying glass tilted right within it. While both logos represent a lowercase g, that is the only real similarity. Additionally, they abandoned it over a decade ago, and people still believe that Google owns the lowercase letter g, despite the font being completely different. It shouldn't take that long to get used to.
I also want to add that although there are countless users who upvoted this post, I think the silent majority of users preferred the lowercase g, but simply didn't speak up about it, as they had no reason to go to kagifeedback. A poll could be created to see the user preference.
Alternatively, it may be possible to add an option to customize the favicon for those who confuse the g with Google's logo. Otherwise, a new logo could be used representing the mascot, but this will be difficult to pull off to be recognizable like Firefox or Github, so the mascot would have to be simplified extensively. To be distinguished in the tabs. The magnifying glass in the current state is difficult to recognize among the tabs, and is not good for scalability to different devices which have small favicons.